"Tiger Woods hurt us all!"
2009-12-28 · Original WordPress address
That was the subject of an email from Prof. Knittle to the economics mail list regarding his new event study. The SF Examiner writes it up better than I can, but here's the key graph.
Companies that had endorsed Woods saw dramatic negative abnormal returns (i.e. stock returns relative to a comparison group of stocks) days after the announcement of his retirement.
It would be interesting to see what the long-run impact of Tiger's demise will be on these companies' stocks. Have we uncovered a "Tiger Woods" anomaly?! If not, paparazzi perform a valuable function. They make markets more rational!