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A test of the representativeness bias effect on stock prices: A study of Super Bowl commercial likeability

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  • Chang, Charles
  • Jiang, Jing
  • Kim, Kenneth A.

Abstract

We test 17years of Super Bowl commercials, finding that "liked" commercials coincide with higher stock returns, despite controls for firm size and changes in sales. This is consistent with representativeness bias, the irrational relation of firm characteristics to returns.

Suggested Citation

  • Chang, Charles & Jiang, Jing & Kim, Kenneth A., 2009. "A test of the representativeness bias effect on stock prices: A study of Super Bowl commercial likeability," Economics Letters, Elsevier, vol. 103(1), pages 49-51, April.
    • Handle: RePEc:eee:ecolet:v:103:y:2009:i:1:p:49-51
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    References listed on IDEAS

    as
    1. David Hirshleifer, 2001. "Investor Psychology and Asset Pricing," Journal of Finance, American Finance Association, vol. 56(4), pages 1533-1597, August.
    2. Fama, Eugene F & French, Kenneth R, 1996. "Multifactor Explanations of Asset Pricing Anomalies," Journal of Finance, American Finance Association, vol. 51(1), pages 55-84, March.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Super Bowl e Mercado Acionário
      by Roberto Ushisima in Empresas e Mercados on 2011-02-06 08:50:00

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    Cited by:

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    2. Gizelle D. Willows & Daniel W. Richards, 2023. "Buy and buy again: The impact of unique reference points on (re)purchase decisions," International Review of Finance, International Review of Finance Ltd., vol. 23(2), pages 301-316, June.
    3. Kuo-Hwa Chang & Michael Nayat Young, 2019. "Portfolios Optimizations of Behavioral Stocks with Perception Probability Weightings," Annals of Economics and Finance, Society for AEF, vol. 20(2), pages 817-845, November.
    4. 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.
    5. Neenu Chalissery & Mosab I. Tabash & T. Mohamed Nishad & Ibtehal M. Aburezeq & Linda Nalini Daniel, 2023. "Does the Investor’s Trading Experience Reduce Susceptibility to Heuristic-Driven Biases? The Moderating Role of Personality Traits," JRFM, MDPI, vol. 16(7), pages 1-21, July.

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