TITLE

The Financial Markets and Customer Satisfaction: Reexamining Possible Financial Market Mispricing of Customer Satisfaction

AUTHOR(S)
Jacobson, Robert; Mizik, Natalie
PUB. DATE
September 2009
SOURCE
Marketing Science;Sep/Oct2009, Vol. 28 Issue 5, p810
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
We investigate the association between information contained in the American Customer Satisfaction Index (ACSI) metric and future stock market performance. Some past research has provided results suggesting that the financial markets misprice customer satisfaction; i.e., firms advantaged in customer satisfaction are posited to earn positive future-period abnormal stock returns. We reexamine this relationship and find that statistically significant evidence of financial market mispricing of customer satisfaction is limited to firms in the computer and Internet sector. The results suggest that the mispricing anomaly reported in past research appears not to stem from a systemic failure of the financial markets to impound the financial implications of customer satisfaction into current stock price, but rather from abnormal returns achieved by a small group of satisfaction leaders in the computer and Internet sector over the period of study. Analyses based on unconditional risk covariates and analyses using conditional risk covariates estimated from short-window, high-frequency data support this finding.
ACCESSION #
47192284

 

Related Articles

  • The Effect of Earnings Announcement on Share Prices in Ghana: A Study of Ghana Stock Exchange. Eleke-Aboagye, Paul Quaisie; Opoku, Ebenezer // Research Journal of Finance & Accounting;2013, Vol. 4 Issue 17, p166 

    In an efficient market, information is as plentiful and inexpensive, and the market is expected to immediately absorb any information released to the public. This paper examined the effect of earnings announcement on GSE by analyzing changes in share prices for the period from January 2010 to...

  • Customer Satisfaction-Based Mispricing: Issues and Misconceptions. Jacobson, Robert; Mizik, Natalie // Marketing Science;Sep/Oct2009, Vol. 28 Issue 5, p836 

    We appreciate the opportunity to respond to the commentaries and additional analyses by Fornell et al. [Fornell, C., S. Mithas, F. V. Morgeson III. 2009a. The economic and statistical significance of stock returns on customer satisfaction. Marketing Sci. 28(5) 820-825] and Ittner et al. [Ittner,...

  • ESTUDIO DEL EFECTO TAMAÑO EN LOS PRINCIPALES MERCADOS BURSÁTILES DE LATINOAMÉRICA. Duarte Duarte, Juan Benjamín; Ramírez León, Zulay Yesenia; Sierra Suárez, Katherine Julieth // Revista Internacional Administración & Finanzas (RIAF); 

    In this paper we study the existence of size effect in major stock markets in Latin America (Argentina, Brazil, Chile, Colombia, Mexico and Peru), by analyzing the historical return of the companies listed on each stock exchange, for the period between January 2002 and May 2012. The research is...

  • Assessing the Financial Failure Using Z-Score and Current Ratio: A Case of Sugar Sector Listed Companies of Karachi Stock Exchange. Ijaz, Muhammad Shahzad; Hunjra, Ahmed Imran; Hameed, Zahid; Maqbool, Adnan; Rauf-i-Azam // World Applied Sciences Journal;2013, Vol. 23 Issue 6, p863 

    Since 1968, after the development of multivariate model, financial health of the corporate sector to predict their financial failure is heavily studied. Altman Z-Score is the most efficient model to judge the financial failure of the companies. This study uses Altman's Z-Score and current ratio...

  • 3 The Norwegian macro-financial environment.  // Financial Stability;2008, Issue 1, p25 

    The article provides information on the performance of economic and security market in Norway. Reports by the National Accounts reveals that total gross investment in the enterprise sector has increased by more than 12% in 2007. The volatile in the Norwegian equity market has led to a marked...

  • OPPORTUNITIES FOR THE FINANCIAL MARKETS IN THE IMPLEMENTATION OF SUSTAINABILITY CRITERIA. Barbu, Teodora Cristina; Dardac, Nicolae; Boitan, Iustina // Quality - Access to Success;2011 Supplement, p47 

    The purpose of this article is to highlight the opportunities of the financial market in order to ensure the sustainable development of the economy. In the past decade, and especially in the context of global financial crisis, financial institutions' concerns have intensified in finding new ways...

  • The Impact Of Dividend Announcement On Share Price Behaviour In Ghana. Asamoah, Gordon Newlove // Journal of Business & Economics Research;Apr2010, Vol. 8 Issue 4, p47 

    The Efficient Market Hypothesis (EMH) provides that security prices reflect all available information. However, despite dividend announcements made in 2005, three companies selected for study performed badly on Ghana Stock Exchange (GSE). The problem of the study was therefore to establish...

  • The Use of Runs Test in Amman Stock Exchange. Elbarghouthi, Sameer; Qasim, Amer; Yassin, Mohammed // International Business Research;Feb2012, Vol. 5 Issue 2, p159 

    This paper applies runs test - runs up and down, distributions of runs by length, and runs above and below -to examine whether ASE is weak form efficient. The empirical results obtained in this paper suggest that the price behavior in ASE does not follow the random walk model over time. However,...

  • Personal Taxes and Equity Security Pricing. Vandell, Robert F.; Stevens, Jerry L. // Financial Management (1972);Spring82, Vol. 11 Issue 1, p31 

    To a practitioner, the position is that personal taxes affect pricing in the security markets. Yet, capital asset pricing theory is based on a number of perfect market assumptions, one of which is that personal taxes taxes do not exist. It is noted that perhaps there is some justification to the...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics