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Can Companies Influence Investor Behaviour through Advertising? Super Bowl Commercials and Stock Returns


  • Frank Fehle
  • Sergey Tsyplakov
  • Vladimir Zdorovtsov


"Recent research shows that mood and attention may affect investors' choices. In this paper we examine whether companies can create such mood and attention effects through advertising. We choose a natural experiment by investigating price reactions and trading activity for firms employing TV commercials in 19 Super Bowl broadcasts over the 1969-2001 period. We find significant positive abnormal returns for firms which are readily identifiable from the ad contents, which is consistent with the presence of mood and attention effects. For recognisable companies with the number of ads greater than the sample mean, the event is followed by an average abnormal one day return of 45 basis points. The effect appears to persist in the short term with the 20-day post-event cumulative abnormal returns for such firms averaging 2%. We find significant abnormal net buying activity for small trades in shares of recognised Super Bowl advertisers indicating that small investors tend to be the ones most attracted by the increased publicity". Copyright Blackwell Publishers Ltd, 2005.

Suggested Citation

  • Frank Fehle & Sergey Tsyplakov & Vladimir Zdorovtsov, 2005. "Can Companies Influence Investor Behaviour through Advertising? Super Bowl Commercials and Stock Returns," European Financial Management, European Financial Management Association, vol. 11(5), pages 625-647.
  • Handle: RePEc:bla:eufman:v:11:y:2005:i:5:p:625-647

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    References listed on IDEAS

    1. Malmendier, Ulrike M. & Shanthikumar, Devin, 2004. "Are Investors Naive about Incentives?," Research Papers 1867, Stanford University, Graduate School of Business.
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    Cited by:

    1. Aspara, Jaakko & Chakravarti, Amitav, 2015. "Investors’ reactions to company advertisements: the persuasive effect of product-featuring ads," LSE Research Online Documents on Economics 64130, London School of Economics and Political Science, LSE Library.
    2. Fumiko Takeda & Hiroaki Yamazaki, 2006. "Stock Price Reactions to Public TV Programs on Listed Japanese Companies," Economics Bulletin, AccessEcon, vol. 13(7), pages 1-7.
    3. Kaniel, Ron & Ozoguz, Arzu & Starks, Laura, 2012. "The high volume return premium: Cross-country evidence," Journal of Financial Economics, Elsevier, vol. 103(2), pages 255-279.
    4. Carretta, Alessandro & Farina, Vincenzo & Graziano, Elvira Anna & Reale, Marco, 2011. "Does investor attention influence stock market activity? The case of spin-off deals," MPRA Paper 33545, University Library of Munich, Germany.
    5. repec:ebl:ecbull:v:13:y:2006:i:7:p:1-7 is not listed on IDEAS
    6. Takeda, Fumiko & Wakao, Takumi, 2014. "Google search intensity and its relationship with returns and trading volume of Japanese stocks," Pacific-Basin Finance Journal, Elsevier, vol. 27(C), pages 1-18.
    7. Jeffery Born & Yousra Acherqui, 2015. "A symmetric Super Bowl stock market predictor model," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 29(2), pages 115-124, May.
    8. repec:eee:pacfin:v:46:y:2017:i:pb:p:243-257 is not listed on IDEAS
    9. Raithel, Sascha & Taylor, Charles R. & Hock, Stefan J., 2016. "Are Super Bowl ads a super waste of money? Examining the intermediary roles of customer-based brand equity and customer equity effects," Journal of Business Research, Elsevier, vol. 69(9), pages 3788-3794.

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