Mobile App Releases and Firm Value: Reconciling Conflicting Literature
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Current research finds different impacts on the effect of mobile application (app) releases on firm value. Prior event studies based on mobile app announcement dates show positive abnormal returns on average, and prior event studies based on mobile app release dates show negative abnormal returns on average. These conflicting results send mixed messages on the impact of mobile apps on firm value. An event study methodology is used to determine if initial mobile app releases generate positive or negative abnormal returns on average. This paper considers mobile app releases both with and without announcements to attempt to reconcile conflicts in the literature. The effects of time, industry, mobile app category, and mobile operating system are also examined. A sample of 305 initial mobile app releases during 2008 through 2020 from S&P 500 firms is analyzed. The results confirm prior studies that mobile app releases have different effects on firm value on the announcement date and release date. Industry and mobile app category are shown to have a statistically significant, positive effect on firm value for mobile app releases, but time and mobile operating system do not have a statistically significant effect. Keywords: mobile app, event study, firm value, abnormal returns, Apple, Android, announcement
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