The Influence of Celebrity Endorsements on Stock Prices

Abstract

Celebrity endorsements have been long been used to promote companies’ products and strengthen brands; however, celebrity endorsements can also be linked to an increase in company stock prices.  The purpose of this paper is to examine the influence of celebrity endorsements on stock prices.  An overview of the theoretical framework of the celebrity will be applied to stock analysts and a review of the abnormal returns of this influence will be presented.