Winning a Clio Advertising Award and its Relationship to Firm Profitability

摘要

Directly linking advertising creativity and effectiveness to a firm's financial performance continues to be a central goal of practitioners and academics alike. Thus, this research empirically analysed the financial impact that winning a Clio Award for advertising has on publicly traded firms. Using the event study methodology, this paper extends the growing body of research that seeks to explain how specific events affect a firm's expected future earnings. The findings suggest that, for food manufacturers and retailers, winning one or more Clio Awards may result in positive cumulative abnormal returns. However, the results also suggest that there may be some negative connotations associated with Clio Awards that may be derived from the difficulties in determining the actual return on investment for specific advertising activities.