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Finance and Economics Vision

Volume 6 nos.1 April 2024 ISSN 2755-3272

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The Impact of Investors’ Attention on New Product Introduction on Stock Returns Based on Google Trend Search Volume

  • Yueyang Ma*†, Yang Yang‡, Longjie Li§, Qingyu Luo¶
    *School of International Business School, Tianjin University of Finance and Economics, Tianjin, 300222, China, Maried2003@126.com
    †Corresponding author email: Maried2003@126.com
    ‡Nottingham University Business School, University of Nottingham Ningbo China, Ningbo, 315199, China, biyyy30@nottingham.edu.cn
    §Alliance Manchester Business School, University of Manchester, Manchester, M1 5NR, United Kingdom, jie.nancy34@outlook.com
    ¶The college of Arts and Sciences, Kansas State University, Manhattan, 66506, United States, 2016605453@qq.com

  • This study utilizes Apple Inc. as a case study to investigate the influence of investor attention on the company’s returns following new product announcements. The analysis incorporates Apple stock prices spanning from 2007 to 2023, the S&P 500 index, and Google search volume data within an 11-day window surrounding each announcement, which serves as a proxy for investor attention. Employing both event analysis and regression analysis method- ologies, the following conclusions are drawn:


    1. The impact of relatively fixed product introductions on stock returns is found to be statistically insignificant. Only when a product introduces substantial innovations that surpass investor expectations does it lead to abnormal returns for the company.


    2. No significant correlation is observed between investor attention, as measured by Google search volume, and abnormal returns for Apple stock. The regularity of Apple’s product announcements is thought to lessen the effect of attention elements, which explains the absence of association. Additionally, the influence of Google search volume is found to be limited in this context. 

      Key words: Product announcement, Google trend search counts, stock return, event analysis.

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  • This study utilizes Apple Inc. as a case study to investigate the influence of investor attention on the company’s returns following new product announcements. The analysis incorporates Apple stock prices spanning from 2007 to 2023, the S&P 500 index, and Google search volume data within an 11-day window surrounding each announcement, which serves as a proxy for investor attention. Employing both event analysis and regression analysis method- ologies, the following conclusions are drawn: 1. The impact of relatively fixed product introductions on stock returns is found to be statistically insignificant. Only when a product introduces substantial innovations that surpass investor expectations does it lead to abnormal returns for the company. 2. No significant correlation is observed between investor attention, as measured by Google search volume, and abnormal returns for Apple stock. The regularity of Apple’s product announcements is thought to lessen the effect of attention elements, which explains the absence of association. Additionally, the influence of Google search volume is found to be limited in this context.