Is there a relationship between the Super Bowl and stock prices?

EXPERT ALERT

David Ruth
713-348-6327
david@rice.edu

Jeff Falk
713-348-6775
jfalk@rice.edu 

Is there a relationship between the Super Bowl and stock prices?
Rice professors say publicly traded companies can expect an increase in stock sales after big ad buys

HOUSTON – (Feb. 4, 2016) – Companies can 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 common stock being traded, even if they’re not advertising a consumer product.

Levi's Stadium in Santa Clara, Calif., will host Super Bowl 50 on Feb. 7 between the Denver Broncos and Carolina Panthers. Credit: thinkstockphotos.com/Rice University

Levi’s Stadium in Santa Clara, Calif., will host Super Bowl 50 on Feb. 7 between the Denver Broncos and Carolina Panthers. Credit: thinkstockphotos.com/Rice University

“We’re fairly certain that the publicly traded companies advertising on Sunday’s Super Bowl will see a spike in stock purchases,” said James Weston, professor of finance and co-author of the study “Advertising, Breadth of Ownership and Liquidity.”

Weston, along with Jones School 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 advertising investment.”

To schedule an interview with Weston, contact Jeff Falk, associate director of national media relations at Rice, at jfalk@rice.edu or 713-348-6775.

Rice University has a VideoLink ReadyCam TV interview studio. ReadyCam is capable of transmitting broadcast-quality standard-definition and high-definition video directly to all news media organizations around the world 24/7.

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Follow the Jones Graduate School of Business on Twitter @RiceMBA.

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Related materials:

“Advertising, Breadth of Ownership and Liquidity” study: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=304240

Weston bio: http://business.rice.edu/James_Weston

Jones Graduate School of Business: http://business.rice.edu

About Jeff Falk

Jeff Falk is associate director of national media relations in Rice University's Office of Public Affairs.