Is bad news always bad? The impact of Floyd Landis's rise and fall on Phonak
AbstractIn the space of one week, cyclist Floyd Landis went from hero to villain when his remarkable comeback to win the 2006 Tour de France was nullified by a positive drug test. I use event study techniques to analyse the impact of Landis's rise and fall on the profitability of Phonak, his team's sponsor. I find that neither his spectacular win nor his rapid fall had an immediate impact on Phonak but that there was a significant cumulative abnormal return to Phonak stock in the wake of these events. I conclude that Phonak benefited from both the good and bad news about Landis.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 17 (2010)
Issue (Month): 8 ()
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Web page: http://www.tandfonline.com/RAEL20
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- Matthew Hood, 2012. "The Tiger Woods scandal: a cautionary tale for event studies," Managerial Finance, Emerald Group Publishing, vol. 38(3), pages 543-558, May.
- Robert Finger, 2010. "Stock price responses on the German suspension of genetically modified maize," Economics Bulletin, AccessEcon, vol. 30(3), pages 2220-2229.
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