Determinants of television station franchise values
Pinter, Leslie Francis
Besen, Stanley M.
Master of Arts
Because of the exceptionally high profits earned by holders of television broadcasting licenses, and the common property resource nature of such franchises, there is considerable Interest in the Identification of the factors that determine profitability in this industry. The present work, based on previous studies of a similar nature, employs multiple linear regression to examine several hypothesized relationships. It is found that frequency range and the buying power of the market served by the broadcasting facility are indeed significant in determining station sale prices, which are used as a proxy for franchise values. The study employs data for 6 television stations sold during the period from 1967 to 1971 the data is included.