Consumer attention and company performance: Evidence from luxury companies
Peer reviewed, Journal article
Published version
Permanent lenke
https://hdl.handle.net/11250/3089764Utgivelsesdato
2023-08Metadata
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Originalversjon
Cheraghali, H., Høydal, H., Lysebo, C. & Molnar, P. (2023) Consumer attention and company performance: Evidence from luxury companies. Finance Research Letters, 58A, 104280 10.1016/j.frl.2023.104280Sammendrag
Previous research has shown that investor attention, measured by Google searches for company tickers, can predict companies’ returns. However, for companies offering luxury goods in consumer-driven industries, consumer attention might be even more important. Therefore, for each company in the S&P Global Luxury Index we construct a measure of consumer attention based on Google searches for brands related to each company. Our findings suggest that consumer attention predicts the stock returns of these companies to a greater degree than investor attention. The economic significance of these findings is demonstrated by highly profitable trading strategies.