Statistical Determinants of Radio Stations' Revenues and Trading Prices

摘要

This study estimates the effects of AM power, AM frequency, FM power, consumer income, number of competing stations in a market area, and whether a station is located in the central part of its market area. These variables show approximately the same percentage effects on trading prices as on revenues. The following variables have no statistically significant associations with revenues: newspaper circulation, automobile registration, and number of TV stations in a market area; whether an AM station has nighttime signal protection and/or uses a directional antenna; and whether a station has network affiliation. The data suggest somewhat more than one-half of a new station's revenues are likely on average to come from advertising dollars not previously spent on radio.