Estimating the Market Value of Steve Jobs Using an Event Study

12 Pages Posted: 25 Feb 2016 Last revised: 28 Feb 2016

See all articles by Pornsit Jiraporn

Pornsit Jiraporn

Pennsylvania State University - School of Graduate Professional Studies (SGPS)

Napatsorn Jiraporn

State University of New York at New Paltz

Pattanaporn Chatjuthamard

Sasin GIBA

Shenghui Tong

Central University of Finance and Economics (CUFE)

Date Written: February 23, 2016

Abstract

Using an event study approach, we seek to estimate the market value investors placed on Steve Jobs by investigating the stock market reactions to his death. In the three-day window surrounding his death, the estimated cumulative abnormal returns (CAR) are -5.76%. Given the market capitalization of Apple at the time, it can be inferred that investors valued Steve Jobs at 20 billion dollars. While tragic, the news about Jobs’ death is greeted favorably by Apple’s competitors. The competitors appear to be convinced that, without Steve Jobs, they can compete with Apple better.

Keywords: Steve Jobs, event study, Apple, competition, stock market reaction

JEL Classification: G14

Suggested Citation

Jiraporn, Pornsit and Jiraporn, Napatsorn and Chatjuthamard, Pattanaporn and Tong, Shenghui, Estimating the Market Value of Steve Jobs Using an Event Study (February 23, 2016). Available at SSRN: https://ssrn.com/abstract=2737078 or http://dx.doi.org/10.2139/ssrn.2737078

Pornsit Jiraporn (Contact Author)

Pennsylvania State University - School of Graduate Professional Studies (SGPS) ( email )

30 E. Swedesford Road
Malvern, PA 19355
United States
(484) 753-3655 (Phone)

HOME PAGE: http://www.personal.psu.edu/pxj11/index1.html

Napatsorn Jiraporn

State University of New York at New Paltz ( email )

1 Hawk Drive
600 Hawk Drive
New Paltz, NY 12561-2443
United States

Pattanaporn Chatjuthamard

Sasin GIBA ( email )

Bangkok
Thailand

Shenghui Tong

Central University of Finance and Economics (CUFE) ( email )

39 South College Road
Haidian District
Beijing, Beijing 100081
China

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