Marketing Letters

, Volume 12, Issue 1, pp 13–23 | Cite as

When Bad Things Happen to the Endorsers of Good Products

  • Therese A. Louie
  • Robert L. Kulik
  • Robert Jacobson


We investigate how a firm's financial performance (as measured by stock returns) is influenced when celebrity endorsers become involved in undesirable events, i.e., events that have a deleterious effect on the spokespersons. We find that the stock market reaction to these events is negatively related to spokesperson blameworthiness. The lower (higher) the culpability, the higher (lower) the stock return. Interestingly, it is only those firms associated with spokespersons having high culpability that tend to experience losses in stock market value. In contrast, we find that events rated at or below the mean level of blameworthiness are associated with positive stock market returns.

celebrity endorsers blameworthiness event study 


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Copyright information

© Kluwer Academic Publishers 2001

Authors and Affiliations

  • Therese A. Louie
    • 1
  • Robert L. Kulik
    • 1
  • Robert Jacobson
    • 1
  1. 1.Business School, Box 353200University of WashingtonSeattle

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