New Product Preannouncement Strategiesand Stock Prices

• Main Authors: Chien-Hua Kao, 高建華
• Other Authors: Min-Hsien Chiang
• Format: Others
• Language: en_US
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/15432805124289170184

碩士 === 國立成功大學 === 國際企業研究所碩博士班 === 94 === 　　　　Abstract 　New product preannouncement (NPPA) plays an important role in prelaunch marketing activities of a new product introduction. Although a great deal of marketing research show that the influence of NPPAs is positive for firms, there has not been any financial empirical study to support the importance of NPPA. Thus, in our study, we make a start by adding NPPA strategy factors into our models to understand the role of NPPA strategies in determining the wealth effect of official new product launch announcements on shareholder values. To our knowledge, this is the first study to document the influence of NPPA strategies on stock prices. 　We hypothesize that the NPPAs will enhance the wealth effect of official new product launch announcement. 　In this paper, we collect a sample of announcements of official new product launches and new product preannouncements (NPPA) by firms from the Wall Street Journal and the LexisNexis Academic database. We use the event study methodology to measure the abnormal return in the stock market and run multiple regression models to test our hypothesis. 　Our results support that the wealth effect of official new product launch announcement with NPPAs is significantly greater than that without NPPAs. Earlier preannouncements, and a wider variety of cues published in the new product preannouncements, may lead to a greater wealth effect. The NPPA interval is significantly negatively related to the wealth effect in larger firms but positively in smaller firms. And the NPPA volume just significantly positively related to the wealth effect in smaller firms. Firm size plays a significant moderating role.