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The Michelle Markup: The First Lady’s Impact on Stock Prices of Fashion Companies

41 Pages Posted: 29 Apr 2010 Last revised: 1 Dec 2011

David Yermack

New York University (NYU) - Stern School of Business

Date Written: December 1, 2011

Abstract

I analyze changes in apparel company stock prices when Michelle Obama wears designer outfits at public events. Company stock prices rise significantly when the First Lady wears their clothing, increasing about 1.7% in the week following her most closely watched appearances and by about half as much after routine events. During 2009 her public appearances led to immediate gains exceeding $5 billion in shareholder value for various clothiers, in a pattern that closely tracks her daily schedule. Internet users search the names of individual designers with higher frequency after the First Lady wears their creations at major events, a pattern likely associated with surges in online product sales.

Keywords: Fashion stocks, social media, Michelle Obama

Suggested Citation

Yermack, David, The Michelle Markup: The First Lady’s Impact on Stock Prices of Fashion Companies (December 1, 2011). Available at SSRN: https://ssrn.com/abstract=1596803 or http://dx.doi.org/10.2139/ssrn.1596803

David Yermack (Contact Author)

New York University (NYU) - Stern School of Business ( email )

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HOME PAGE: http://www.stern.nyu.edu/~dyermack

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