Analysis of Film Awards on the Pricing of Shares in the Film Industry

Despite the fact that a large number of papers related to the sphere of the film industry of the United States have been written, a holistic study covering various American film awards has not yet been conducted. Thus, this work is one of the first attempts to reveal the relationship between the award of the film prize and the profitability of the shares of film production companies. The research methodology is based on event analysis based on the cumulative excess return (CAR) model. In the presented work the winners of the following film awards are considered: Oscar, Golden Globe, Independent Spirit, Saturn and Golden Raspberry in the period from 2000 to 2017. The sample included films from seven major companies. The obtained results indicate that the receipt of film awards leads to positive anomalous returns for the company, and the award of the anti-premium "Golden Raspberry" has a negative impact on the dynamics of shares. The average excess return (ARR) on the day of the event is 0.11%. The paper also presents an analysis by companies, the "best film" nomination is singled out separately, and the sample is divided into two time intervals. At the end of the paper, recommendations for further development of this topic are presented.