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Is bad news always bad? The impact of Floyd Landis's rise and fall on Phonak


  • Michael Leeds


In 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.

Suggested Citation

  • Michael Leeds, 2010. "Is bad news always bad? The impact of Floyd Landis's rise and fall on Phonak," Applied Economics Letters, Taylor & Francis Journals, vol. 17(8), pages 805-808.
  • Handle: RePEc:taf:apeclt:v:17:y:2010:i:8:p:805-808
    DOI: 10.1080/13504850802464109

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    Cited by:

    1. Robert Finger, 2010. "Stock price responses on the German suspension of genetically modified maize," Economics Bulletin, AccessEcon, vol. 30(3), pages 2220-2229.
    2. Sherry Bartz & Alexander Molchanov & Philip Stork, 2013. "When a celebrity endorser is disgraced: A twenty-five-year event study," Marketing Letters, Springer, vol. 24(2), pages 131-141, June.
    3. repec:eme:mfipps:v:36:y:2010:i:3:p:543-558 is not listed on IDEAS

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