Estimating the market value of Steve Jobs using an event study

Pattanaporn Chatjuthamard, Pornsit Jiraporn, Napatsorn Jiraporn, Shenghui Tong

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

Using an event study approach, we seek to estimate the 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 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 favourably by Apple’s competitors. The competitors appear to be convinced that, without Steve Jobs, they can compete with Apple better.

Original languageEnglish (US)
Pages (from-to)30-34
Number of pages5
JournalApplied Economics Letters
Volume24
Issue number1
DOIs
StatePublished - Jan 2 2017

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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