This study examines the impact of changes in brand quality that are unanticipated by investors on three components of shareholder wealth: stock returns, systematic risk and idiosyncratic risk. The study finds that such changes in brand quality enhance shareholder wealth by being positively...

Under the sociological theory of homophily, people who are similar to one another are more likely to interact with one another. Marketers often have access to data on interactions among customers from which, with homophily as a guiding principle, inferences could be made about the underlying...