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Abstract

South Korea's entertainment industry has garnered global popularity. However, the competition between entertainment companies is fierce, necessitating strategies to ensure their survival, such as imposing restrictions on their artists to maintain their public image and trust. This study examined the impacts of celebrity news and activities on the stock returns of six major entertainment companies listed on the Korea Exchange (KRX) from 2018-2021. Employing the Fama-French 3 Factors Model regression, the study investigated the presence of abnormal returns. The findings indicate that comebacks and debuts elicit positive reactions and generate significant abnormal returns. Award acceptances and military service also elicit positive reactions but do not generate significant abnormal returns. Dating news, internal scandals, and national scandals elicit negative reactions. However, only national scandals generate significant abnormal returns. These findings imply that entertainment companies and investors should actively manage and monitor celebrity news to make informed decisions.

Bahasa Abstract

Industri hiburan Korea Selatan telah mendapatkan popularitas global. Namun, persaingan antar perusahaan hiburan sangat ketat sehingga memerlukan strategi untuk memastikan kelangsungan hidup perusahaan, seperti menerapkan peraturan pada artis mereka untuk menjaga citra dan kepercayaan publik. Penelitian ini menguji pengaruh berita dan aktivitas selebriti terhadap return saham enam perusahaan hiburan besar yang terdaftar di Korea Exchange (KRX) pada tahun 2018-2021. Dengan menggunakan regresi Model 3 Faktor Fama-French, penelitian ini menyelidiki keberadaan abnormal return. Temuan menunjukkan bahwa comeback dan debut menimbulkan reaksi positif dan menghasilkan abnormal return yang signifikan. Penerimaan penghargaan dan dinas militer juga menimbulkan reaksi positif namun tidak menghasilkan keuntungan abnormal yang signifikan. Berita kencan, skandal internal, dan skandal nasional menimbulkan reaksi negatif. Namun, hanya skandal nasional yang menghasilkan keuntungan abnormal yang signifikan. Temuan ini menyiratkan bahwa perusahaan hiburan dan investor harus secara aktif mengelola dan memantau berita selebriti untuk mengambil keputusan yang tepat.

References

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