Star power and box office revenues: evidence from China

Fei Peng; Lili Kang; Sajid Anwar; Xue Li

doi:10.1007/s10824-018-9338-0

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Star power and box office revenues: evidence from China

Journal article

Peer reviewed

Star power and box office revenues: evidence from China

Fei Peng, Lili Kang, Sajid Anwar and Xue Li

Journal of Cultural Economics, Vol.43(2), pp.247-278

2019

DOI: https://doi.org/10.1007/s10824-018-9338-0

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Abstract

star power in China

box office revenues

industry recognition

Internet media evaluation

Internet media buzz

Using data over the 2009-2016 period, this paper examines the impact of star power on box office revenues in China. Unlike most existing studies, we measure star power as a continuous variable based on the number of registered fans of movie stars on the most popular microblogging website in China (Sina Weibo). We also examine the impact of star power on box office revenues through three important channels (industry recognition, internet media evaluation, and internet media buzz). Estimation of log-linear specifications shows that directors play an important role in the financial success of movies in China. The direct effect of star power on the financial success of movies is negative, and the same applies to the direct effect of internet media evaluation. The indirect quality effect of star power through industry recognition is positive but insignificant. The marginal effect of industry recognition becomes significantly positive only when the level of star power reaches the second quartile of its distribution. The indirect signal effect of star power through internet media evaluation is negative and statistically significant. However, the indirect signal effect through internet media buzz is positive and significant at all levels of star power and this effect dominates the negative direct effect of star power once it reaches a threshold level. Endogeneity-corrected estimation results confirm that the total effect of star power on box office revenues in China is positive and significant. The Chinese movie industry, which appears to be dominated by low-quality movies, can benefit from further reforms.

Details

Title: Star power and box office revenues: evidence from China
Authors: Fei Peng (Author) - Shanghai Lixin University of Accounting and Finance
Lili Kang (Author)
Sajid Anwar (Author) - University of the Sunshine Coast - Faculty of Arts, Business and Law
Xue Li (Author)
Publication details: Journal of Cultural Economics, Vol.43(2), pp.247-278
Publisher: Springer New York LLC
Date published: 2019
DOI: 10.1007/s10824-018-9338-0
ISSN: 0885-2545
Organisation Unit: School of Business and Creative Industries; Indigenous and Transcultural Research Centre; University of the Sunshine Coast, Queensland; USC Business School - Legacy
Language: English
Record Identifier: 99450861602621
Output Type: Journal article

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Collaboration types: Domestic collaboration; International collaboration
Web Of Science research areas: Economics