Watch the Super Bowl and buy some stocks?

Feb 05, 2010

Rice professors say publicly traded companies can expect increase in stock sales after big ad buys.

It is commonly known that companies spend millions of dollars on advertising to increase general awareness, introduce new product lines, build on their brands and sell products and services, but professors at Rice University's Jones Graduate School of Business say such high-profile advertising provides another result that is not so well-known: Publicly traded companies who invest in big ad buys like the Super Bowl see a spike in their being traded, even if they're not advertising a consumer product.

"We're fairly certain that the publicly traded companies advertising on Sunday's will see a spike in stock purchases," said James Weston, an associate professor of management and co-author of the study "Advertising, Breadth of Ownership and ."

Weston, along with Rice colleagues Gustavo Grullon and George Kanatas, said the increase in common-stock trading will come from the "everyday" person and not serious investors.

"People buy on impulse and on recognition," Weston said. "With more and more online trading taking place, companies that spend money on big advertising campaigns see this additional benefit from their investment."

Explore further: Affirmative action elicits bias in pro-equality Caucasians

add to favorites email to friend print save as pdf

Related Stories

Stock Price Correlated to Likeability of Super Bowl Ads

Jan 26, 2009

(PhysOrg.com) -- When TV viewers like a company's Super Bowl commercial, the company's stock price goes up, according to a study by researchers at the University at Buffalo School of Management and Cornell University.

Recommended for you

Affirmative action elicits bias in pro-equality Caucasians

10 hours ago

New research from Simon Fraser University's Beedie School of Business indicates that bias towards the effects of affirmative action exists in not only people opposed to it, but also in those who strongly endorse equality.

Election surprises tend to erode trust in government

Jul 24, 2014

When asked who is going to win an election, people tend to predict their own candidate will come out on top. When that doesn't happen, according to a new study from the University of Georgia, these "surprised losers" often ...

Awarded a Pell Grant? Better double-check

Jul 23, 2014

(AP)—Potentially tens of thousands of students awarded a Pell Grant or other need-based federal aid for the coming school year could find it taken away because of a mistake in filling out the form.

User comments : 0