Negative News of Celebrities and Value Change in Companies with Celebrity Endorsements

摘要

It is an important marketing strategy for Chinese companies to use celebrities in the movie and television industry for endorsements to help promote their products and improve their business performance. However, will the negative news of the celebrities have a negative impact on those companies? By using the event study method to screen 56 samples from 2005 to 2018 through the Internet, this paper conducted an empirical study on the changes of the cumulative abnormal returns of the listed companies with celebrity endorsements due to the negative news of their endorsers. The results showed that the cumulative abnormal returns of the listed companies with celebrity endorsements were negative due to the negative news of their endorsers. However, altogether, such returns failed to pass the significance test. The negative news of their endorsers have no significant negative impact on the values of those companies.