Estimating the Market Value of Steve Jobs Using an Event Study
12 Pages Posted: 25 Feb 2016 Last revised: 28 Feb 2016
Date Written: February 23, 2016
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: Suggested Citation