Home Front

A blog about the economy and the Sacramento-area real estate market.

January 8, 2010
About that UC Davis-Tiger Woods study...

During the week before New Year's, a notoriously slow time for news, two UC Davis professors caused an international media sensation. They released a study saying the Tiger Woods scandal cost his corporate sponsors' stocks to drop a combined $12 billion in the weeks after the scandal hit the news. (You can find our story on the study by clicking here.)

Now the study is getting picked apart. Notably, a column by Carl Bialik, the Wall Street Journal's "Numbers Guy," takes issue with the professors' methodology and findings. Here's a link to his column, which ran in Thursday's Journal.

Bialik wrote that it's practically impossible to blame a specific event for the fluctuation in a stock.

Among his concerns: The study overlooked the fact that one of Woods' sponsors - PepsiCo, which owns Gatorade - issued a negative profit and revenue forecast a couple of weeks after the Woods scandal broke. Bialik argues that PepsiCo's forecast may have skewed the entire results. 

Interestingly, the professors, Victor Stango and Chris Knittel, quietly released a revised version of the study earlier this week in which they mention the PepsiCo forecast and make a few other clarifications. But they say the PepsiCo forecast doesn't undermine their central thesis. We should point out that the new study was released before the Journal published its column.

You can find the new Stango-Knittel study here.

About Comments

Reader comments on Sacbee.com are the opinions of the writer, not The Sacramento Bee. If you see an objectionable comment, click the "report abuse" button below it. We will delete comments containing inappropriate links, obscenities, hate speech, and personal attacks. Flagrant or repeat violators will be banned. See more about comments here.

What You Should Know About Comments on Sacbee.com

Sacbee.com is happy to provide a forum for reader interaction, discussion, feedback and reaction to our stories. However, we reserve the right to delete inappropriate comments or ban users who can't play nice. (See our full terms of service here.)

Here are some rules of the road:

• Keep your comments civil. Don't insult one another or the subjects of our articles. If you think a comment violates our guidelines click the "report abuse" button to notify the moderators. Responding to the comment will only encourage bad behavior.

• Don't use profanities, vulgarities or hate speech. This is a general interest news site. Sometimes, there are children present. Don't say anything in a way you wouldn't want your own child to hear.

• Do not attack other users; focus your comments on issues, not individuals.

• Stay on topic. Only post comments relevant to the article at hand. If you want to discuss an issue with a specific user, click on his profile name and send him a direct message.

• Do not copy and paste outside material into the comment box.

• Don't repeat the same comment over and over. We heard you the first time.

• Do not use the commenting system for advertising. That's spam and it isn't allowed.

• Don't use all capital letters. That's akin to yelling and not appreciated by the audience.

You should also know that The Sacramento Bee does not screen comments before they are posted. You are more likely to see inappropriate comments before our staff does, so we ask that you click the "report abuse" button to submit those comments for moderator review. You also may notify us via email at feedback@sacbee.com. Note the headline on which the comment is made and tell us the profile name of the user who made the comment. Remember, comment moderation is subjective. You may find some material objectionable that we won't and vice versa.

If you submit a comment, the user name of your account will appear along with it. Users cannot remove their own comments once they have submitted them, but you may ask our staff to retract one of your comments by sending an email to feedback@sacbee.com. Again, make sure you note the headline on which the comment is made and tell us your profile name.

hide comments

On October 14, The Sacramento Bee will temporarily remove commenting from sacbee.com. While we design the upgrade, we encourage you to tell us what you like and don't like about commenting on sacbee.com and other websites. We've heard from hundreds of you already and we're listening. Please continue to add your thoughts and questions here. We also encourage you to write Letters to the Editor on this and other topics.

Jim Wasserman on Twitter

Follow "jimwasserman" on Twitter

October 2013

Sun Mon Tue Wed Thu Fri Sat
    1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31