The economic worth of Korean brand ambassadors in luxury industry: an event study analysis

Abstract

Employing an event study methodology, this study examines the economic impact of appointing Korean celebrities as luxury brand ambassadors. By analysing 53 ambassador appointments across two leading luxury groups, the results reveal that announcements of these events generate positive abnormal returns on the event day and the following day. Further analysis shows that male ambassadors yield significantly positive abnormal returns, whereas ambassadors representing multiple brands are associated with negative abnormal returns. These findings extend celebrity endorsement research by highlighting the sustained, multifaceted role of ambassadors in luxury branding and underscore the growing economic influence of Korean entertainment through Hallyu marketing.