Tiger Woods’ approval rating may sink even lower than its current 40%, once stock and mutual fund investors in companies he endorses realize they have lost $12 billion since his extramarital scandal broke, according to estimates by researchers at the
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While the media focus has been on the hit to Woods’ own net worth, “total shareholder losses may exceed several decades’ worth of Tiger Woods’ personal endorsement income,” said Victor Stango, an economics professor and co-author of the study. “This pattern of losses is unlikely to stem from ordinary day-to-day variation in their stock prices.”
“While having a celebrity of Tiger Woods’ stature as an endorser has undeniable upside, the downside risk is substantial, too,” added Victor Stango, also a Davis economics professor and the other author of the report.