What role do celebrity endorsements play in determining the success of a sports apparel company brand, such as Nike, Inc. (Nike) and Under Armour? Each year, Nike and Under Armour spend hundreds of millions of dollars marketing their athletic apparel, footwear, accessories and gear using paid celebrities and professional athletes. Can marketing videos prominently featuring inspirational athletes increase a company’s profitability and stock price value, and lead to stronger brand recognition that could not only convince its current customers to buy products, but also reach new consumers and expand its revenue? By collecting data on Nike and Under Armour’s YouTube videos from July 2010 to November 2017, this study uses characteristics of the companies’ videos, such as professional athletic presence, gender, purpose, intended audience and number of views, to determine whether a celebrity is consistently positively correlated with stock price changes. Two tests produced conflicting results: Celebrity presence was only statistically significant in positively affecting Under Armour’s daily stock price immediately, but not in either company’s weekly or monthly stock prices. Additionally, lack of celebrity presence was statistically significant in negatively impacting Under Armour’s change in monthly stock price. These mixed results demonstrate the debatable impact a celebrity endorsement has on a company’s stock market valuation. The conclusion discusses potential factors that may have contributed to Under Armour’s stock price fall.

In today’s competitive market companies aim at increasing revenue to acquire a higher market share. Previous research indicates that this can be achieved with intangible assets. These assets are described as a firm’s dynamic capabilities, which can be attained through knowledge resources, organizational structure, employee skills, customer size, Research and Development (R&D), innovative capability, market share or a recognizable brand. Previous studies have associated intangible assets to be very significant for a company’s success and even associated them with creating GDP growth, specifically in Nordic countries. Studies indicate an increasing gap between a company’s market value and book value, which is related to the constant omission of intangible assets from the balance sheet. As a result, this gap, according to previous research, attests that markets are not fully efficient and stock prices do not reflect all available information. Internally generated brand equity is among the assets omitted from the balance sheet. Brand equity is one of the most powerful intangibles within a company. Therefore, it has been alleged of generating higher returns. Due to current accounting standards, IAS 38, internally generated brands are not disclosed on the balance sheet. Instead, the standard solely permits externally generated brand equity, which arises during business combinations, to be recognized. Consequently, researchers are questioning the value relevance of accounting because the omission of internally generated brands does not provide accurate information about a company’s true value. As a result, this may create information asymmetry between management and investors. Since investors are interested in a company’s value, the omission of intangibles may lead to poor economic decisions. Numerous studies have addressed the relationship between intangibles and stock returns. However, there is little research that explains brand equity’s relationship to stock performance.  Only one study on Turkish brands, by Basgoze et al (2014), managed to address this relationship. However, the authors only concentrated on abnormal returns and not on significant performance ratios like MTBV, ROA, EPS, P/E and ROE. Considering that the study was based on Turkish brands, a research gap was found in addressing the relationship between brand equity and stock performance in Nordic countries. Seeing that these countries highly invest in intangible assets more than any other European country, it further increased curiosity on the relationship between brand equity and stock performance. To address the gap, a quantitative study in the form of Spearman correlations and a linear regression analysis was conducted. The research design of the study placed brands as an independent variable and stock performance variables as dependent variables. As studies have stated that the MTBV-gap disproves claims of markets being fully efficient, theories like EMH and AHM have been used to analyze the relationship between brand equity and stock performance. Other theories used in the analysis was about brand equity and its different sets, a self-constructed definition of stock performance which included MTBV, ROE, ROA, EPS, P/E and stock returns.  The results of the study showed that brand equity had a positive relationship with three out of the six included variables in the study, meaning that there was a positive relation. Furthermore, the study also showed that the market is not fully efficient since the results indicated that, due to brand equity not being included on the balance sheet, not all available information is included in stock prices. Therefore, investors will adapt to the current conditions of the market, which is in accordance to the Adaptive Market Hypothesis.

This research investigates brand equity’s role in mitigating the impact of the COVID-19, a complex crisis, on firms’ stock performance. It also compares a high brand equity stock (HBES) portfolio with the overall market during three periods of the crisis (downturn, upturn, and total disturbance). To delineate brand equity’s influences across different periods of the COVID-19 crisis, I distinguish between three market periods: (1) market downturn; (2) market upturn; (3) total disturbance. Furthermore, the excess returns of the HBES portfolio with the overall market, containing all the firms listed collectively on the Center for Research in Security Prices (CRSP), NYSE, AMEX, and NASDAQ, are compared. The Fama-French (FF; Fama and French, 1993) method is used to examine the brand equity’s effects on stock return and risk factors, namely volatility and beta. Using the Behavioral Portfolio Theory (BPT), this research shows brand equity insulates firm performance during the COVID-19 crisis by improving stock return and mitigating risks. However, brand equity effects vary across the three market periods, improving stock return and reducing volatility in the downturn. Nevertheless, brand equity does not buffer stock return in the upturn. Overall, during the total disturbance period, brand equity protects stock return and diminishes risk. The comparative findings indicate brand equity is a strong protector of stock return in the downturn, while it is more effective in reducing risk in the upturn. The findings advance research by providing evidence pertaining to brand’s role in mitigating the impact of unpredictable market shocks and crises, such as the COVID-19 pandemic, on stock performance. While brands are mostly viewed as drivers of sustained competitive advantage and profitability, their protective role in times of crisis is noteworthy. The findings can potentially help marketing and brand managers justify marketing spending and aid them in crafting strategies to enhance firm performance during crises similar to the COVID-19. The marketing-finance interface can benefit from insights offered by the COVID-19 pandemic, as such crises are becoming prevalent and are capable of damaging various stakeholder’s outcomes (firms, investors, customers).

The aim of this thesis is to investigate whether certain information, in this case, ESG rating, contributes to better firm performance on the stock market during Covid-19, or whether variables such as size and industry have a higher degree of explanation. The thesis takes on a quantitative method and uses statistical models to analyze secondary data from Refinitiv Eikon. Empirical results provide no evidence that ESG ratings would affect stock market performance during Covid-19. Furthermore, size and industry do not increase the degree of explanation for the relationship. This can be explained by investors' outlook on sustainable investments and the relevance of ESG on the Swedish stock market. Previous research on the relationship between performance in the stock market and ESG ratings has mainly examined larger economies such as the US and the UK or had a global focus. By focusing on the Swedish stock market and including the variables size and industry in the relationship between stock performance and ESG, the thesis adds to a further understanding of the Swedish stock market. This thesis also broadens the perspective of ESG by questioning it as a relevant source of information.

This thesis comprises five empirical essays using Swedish data. Three of the essays examine open market share repurchases, one essay investigates changes in investors’ shareholdings surrounding equity rights offerings (ROs), and the last essay investigates owner-managers’ equity portfolio choices. The first essay examines stock performance around initiation announcements of open market share repurchase programs, the price impact of repurchase trading and the long-run stock performance following the initiation announcements. The study uses a unique data set of initiation announcements and actual share repurchases conducted by firms listed on the Stockholm Stock Exchange (SSE). The results show that initiation announcements of open market repurchase programs exhibit a 2 day abnormal return (AR) of 2% on average. The price impact on the actual repurchase days is positively correlated with the daily repurchase volume, and is both statistically and economically significant during the first 3 repurchase days in a repurchase program. The long-run abnormal stock performance is positively associated with the fraction of shares bought in the program and is on average 7% for the first year following the initiation announcement. The results indicate that repurchase trading provides price support and that the market participants detect and perceive the initiation announcement and the first repurchase days in a repurchase program as a signal of undervaluation. The second essay examines differences in the market performance of Swedish firms that initiate repurchase programs infrequently (1-2 programs), occasionally (3-4 programs) and frequently (5 or more programs) over the period 2000-2009. It is found that infrequent repurchase programs are greeted with a stronger positive reaction than occasional and frequent programs. However, over the long-term, infrequent repurchase programs show no AR while occasional and frequent repurchase programs show significant positive ARs. A positive relationship between AR and repurchase size is documented for all types of repurchase programs. The third essay examines the market liquidity impact of open market share repurchases in an electronic order-driven market. The study uses a detailed data set of daily repurchase transactions on the SSE together with intraday data on bid-ask spreads and order depths which enables an investigation of the liquidity effects on the actual repurchase days. It is found that repurchase trades inside the order-driven trading system contribute to market liquidity through narrower bid-ask spreads and deeper market depths. After controlling for trading volume, price and volatility, a significant decrease of the bid-ask spread on repurchase days relative to surrounding non-repurchase days is still found. However, repurchases executed as block trades outside the order-driven trading system have a detrimental effect on the bid-ask spread, consistent with a negative response to the presence of informed managerial trading. The fourth essay examines changes in equity ownership surrounding ROs by firms listed on the SSE. The results show that domestic individual investors on average reduce their shareholdings following rights issues, whereas domestic institutional investors and foreign investors increase their holdings. However, when ownership changes are adjusted with changes in ownership in matched non-issuing firms, it is documented that domestic institutions significantly increase their shareholdings in RO firms, whereas foreign investors decrease their holdings in these firms. A positive (negative) association between the 6 month benchmark adjusted return following the offering and the change in shareholdings by foreign investors (domestic institutional investors) is also documented. Finally, the fifth and last essay investigates how Swedish owner-managers (CEO or Chairman) invest in the Swedish stock market conditional on a major investment in their own firm. No evidence is found that owner-managers seek diversification benefits when they invest in other Swedish stocks. In general, they choose other stocks that show higher correlation among themselves than the average Swedish stocks. It is also found that owner-managers within high-tech industries invest significantly more of their total Swedish stock investments in IT stocks than owner-managers within other industries. / <p>QC 20130515</p>

This research aims to explore if and to what extent the IPO-Year R&D investments of 32 Application Software companies return value, as measured through stock performance. By utilizing “Ordinary Least Squares Analysis” and the “Fama-French Three Factor Model,” this research explores how the initial R&D investments in “IPO-Year” impact stock returns during the three years post-IPO. This study is purposed to discover if and how long it takes for the initial R&D investment in the IPO-Year to materialize into stock performance for Application Software companies. However, the research and analysis indicates that R&D expenditures in an IPO-Year is not a statistically significant variable in influencing stock performance.

[pt] Este estudo visa analisar o desempenho de empresas familiares brasileiras, que abriram capital entre os anos de 2007 e 2012 através da performance das ações a partir do ano de 2013 até 2017, já que o discurso sobre o desempenho dessas empresas é controverso devido aos problemas de profissionalização e governança corporativa, por exemplo. Com base em estudos realizados em outros países, foram testadas se empresas familiares brasileiras tem melhor desempenho no mercado de ações do Brasil (BOVESPA) do que empresas não familiares que também abriram capital no mesmo período. Foi usado o CAPM como método para estimar o retorno esperado e comparar com retorno real das ações de empresas familiares e não familiares. Os resultados indicam que dentre as empresas analisadas, as familiares obtiveram melhores resultados, mesmo não havendo diferença na relação risco e retorno apresentado por empresas de ambos os grupos. / [en] This study aims to analyze the performance of Brazilian family companies, which opened capital between 2007 and 2012 through the performance of actions from the year 2013 to 2017, since the discourse on the performance of these companies is controversial due to the problems of professionalization and corporate governance, for example. Based on studies conducted in other countries, it was tested whether Brazilian family companies perform better in the Brazilian stock market (BOVESPA) than non-family companies that also opened equity in the same period. CAPM was used as a method to estimate the expected return and to compare with the real return of the shares of family and non-family companies. The results indicate that among the companies analyzed, the family members obtained better results, even though there was no difference in the risk and return relationship presented by companies of both groups.

Submitted by Luana Rodrigues (luana.rodrigues@fgv.br) on 2014-10-06T13:58:03Z No. of bitstreams: 1 Master Thesis_Brazil_Carsten.pdf: 1041207 bytes, checksum: be0ab8e8761b1f2995b5a94413d81e6a (MD5) / Approved for entry into archive by Luana Rodrigues (luana.rodrigues@fgv.br) on 2014-10-06T14:07:00Z (GMT) No. of bitstreams: 1 Master Thesis_Brazil_Carsten.pdf: 1041207 bytes, checksum: be0ab8e8761b1f2995b5a94413d81e6a (MD5) / Made available in DSpace on 2014-10-06T14:26:06Z (GMT). No. of bitstreams: 1 Master Thesis_Brazil_Carsten.pdf: 1041207 bytes, checksum: be0ab8e8761b1f2995b5a94413d81e6a (MD5) Previous issue date: 2014-08-08 / In this study, I analyze the performance of family and non-family firms in Europe between 2001 to 2013 with special attention given to the 2008-09 financial crisis. Twelve years of data have been collected and analyzed by two models: the market adjustment model and a panel estimation technique. Contrary to the hypothesis, results show that family firms do not significantly outperform non-family firms during the overall period -- before-, during-, and after the crisis. However, in terms of beta, significant differences are clearly discernible. One could say that family firms are in general less volatile and show extremely low volatility in the crisis compared to the market. / Neste estudo, analiso o desempenho de empresas familiares e não-familiares na Europa, entre 2001 e 2013, com uma especial atenção ao período da crise financeira de 2008 e 2009. Doze anos de dados foram recolhidos e analisadosusando dois modelos: o modelo de ajustamento do mercado e uma técnica de estimativa de painéis. Ao contrário das expectativas, os resultados mostram que as empresas familiares não têm resultados significativamente superiores às empresas não familiares durante o período em análise, inclusive antes, durante, e depois da crise. No entanto, considerando o valor do beta, existem diferenças significativas. É possível concluir que as empresas familiares são, em geral, menos voláteis e que durante a crise apresentaram uma volatilidade extremamente baixa comparativamente com o mercado.JEL

Marknaden för biotech-relaterade produkter är komplex och har ökat explosionsartat de senaste åren. Bolag som verkar inom denna bransch är ofta kapitalintensiva och tungt beroende avforskning för att lyckas i det långa perspektivet. Utbudet av biotech-relaterade produkter möteren ständigt överväldigande efterfrågan. Utmaningen ligger således ofta inte i att hitta sin marknadsnisch, utan snarare ligger den oftast djupt rotad i produktutvecklingen och R&amp;D. För finansiering och underlättande av ägarbyte söker sig dessa bolag ofta till kapitalmarknaden (börsen). Vidare spelar grundaren en viktig roll vid stora händelser inom bolag, såsom en IPO. Grundarna sänder då ut unika signaler utefter sitt agerande och även enbart genom sitt närvarande. Denna studie syftar till att undersöka eventuella samband mellan grundarens position och rösträtt (genom aktieinnehav) inom ett biotech-bolag och aktiekursens utvecklingefter en genomförd IPO. Studiens urval består av 119 SME biotech-bolag som är noterade 2010-2017 på den svenska aktiemarknaden. Denna studie förser mottagaren med en analys av hur grundare inom den svenska biotech-marknaden påverkar aktiekursen efter en genomförd IPO. Studien uppvisar ett signifikant och positivt samband mellan grundarens position som “övrig ledande befattningshavare” (e.g. CRO, CSO, COO) och aktiekursens utveckling efter en IPO. Detta samband är starkast första handelsdagen samt en vecka efter IPOn. Vi fann även ett negativt samband mellan storleken på grundares aktieinnehav och kursutveckling den första handelsdagen. Resultatet har strategiska implikationer för hur företag sänder ut signaler vid en annalkande IPO samt hur marknaden tolkar dessa. / The market of biotech related products is complex and have experienced a substantial development in the recent years. Companies operating in this industry are often capital intensiveand heavily dependent on research in order to succeed, in a long-term perspective. The amount of biotech-related products is constantly facing an overwhelming level of demand. Therefore, finding a market niche is not usually the primary challenge, but instead the challenge lies deeply rooted within product development and R&amp;D. To facilitate company financing and shifts in ownership, these companies are often drawn towards the capital market (the stock exchange). Furthermore, the founder plays a considerable role at major events within a company, such as IPOs. On such occasions, founders emit unique signals through their actions and mere presence. This study aims to explain the connection between founder position and voting rights (through shareholding) within a biotech-company, and the stock performance after an IPO. The sample consists of 119 SME biotech-companies, listed on the Swedish stock exchange between 2010-2017. The study provides the receiver with an analysis of how founders within the Swedish biotech-industry affects the stock performance after an IPO. The study shows a significant andpositive connection between founders with an “other governing position” (e.g. CRO, CSO,COO) and stock performance after an IPO. The connection is strongest by the first day of trading and after one week. We also found a negative connection between founder shareholding and the stock performance on the first day of trading. The result has strategic implications onhow companies send out signals during an IPO and how these signals are interpreted by the market.

Many firms from emerging markets flocked to developed countries at high cost with hopes of acquiring strategic assets that are difficult to obtain in home countries. Adequate research has focused on the motivations and strategies of emerging country firms' (ECFs') internationalization, while limited studies have explored their survival in advanced economies years after their venturing abroad. Due to the imprinting effect of home country institutions that inhibit their development outside their home market, ECFs are inclined to hire executives with international background and affiliate to world-wide organizations for the purpose of linking up with the global market, embracing multiple perspectives for strategic decisions, and absorbing the knowledge of foreign markets. However, the effects of such orientation on survival are under limited exploration. Motivated by the discussion above, I explore ECFs’ survival and stock performance in a developed country (U.S.). Applying population ecology, signaling theory and institutional theory, the dissertation investigates the characteristics of ECFs that survived in the developed country (U.S.), tests the impacts of global orientation on their survival, and examines how global-oriented activities (i.e. joining United Nations Global Compact) affect their stock performance. The dissertation is structured in the form of three empirical essays. The first essay explores and compares different characteristics of ECFs and developed country firms (DCFs) that managed to survive in the U.S. The second essay proposes the concept of global orientation, and tests its influences on ECFs’ survival. Employing signaling theory and institutional theory, the third essay investigates stock market reactions to announcements of United Nation Global Compact (UNGC) participation. The dissertation serves to explore the survival of ECFs in the developed country (U.S.) by comparison with DCFs, enriching traditional theories by testing non-traditional arguments in the context of ECFs’ foreign operation, and better informing practitioners operating ECFs about ways of surviving in developed countries and improving stockholders’ confidence in their future growth.