The Sponsorship Effect: Do Sport Sponsorship Announcements Impact the Firm Value of Sponsoring Firms?
View/ Open
Author(s)
Reiser, Matthias
Breuer, Christoph
Wicker, Pamela
Griffith University Author(s)
Year published
2012
Metadata
Show full item recordAbstract
This study analyzes the effect of sponsorship announcements on the firm value of sponsoring firms by investigating whether sponsorship announcements have an influence on abnormal returns on share prices. As previous research has neglected sponsorships from different regions and the comparison of sponsorships in different sports, a unique dataset of sponsorship deals between 1999 and 2010 is created (n=629). Using event study methodology the data is analyzed for all sports in general as well as for different sub-samples including soccer, motor sports, and different regions. The results of the event study provide evidence that ...
View more >This study analyzes the effect of sponsorship announcements on the firm value of sponsoring firms by investigating whether sponsorship announcements have an influence on abnormal returns on share prices. As previous research has neglected sponsorships from different regions and the comparison of sponsorships in different sports, a unique dataset of sponsorship deals between 1999 and 2010 is created (n=629). Using event study methodology the data is analyzed for all sports in general as well as for different sub-samples including soccer, motor sports, and different regions. The results of the event study provide evidence that sport sponsorship announcements positively impact stock returns, but this impact differs among sports and regions. The regression results reveal that abnormal returns are significantly higher for sponsorships on brand level, smaller firms, and deals with national reach. The findings have implications for corporate managers and sport managers as equilibrium prices for sponsorship deals have not yet been reached.
View less >
View more >This study analyzes the effect of sponsorship announcements on the firm value of sponsoring firms by investigating whether sponsorship announcements have an influence on abnormal returns on share prices. As previous research has neglected sponsorships from different regions and the comparison of sponsorships in different sports, a unique dataset of sponsorship deals between 1999 and 2010 is created (n=629). Using event study methodology the data is analyzed for all sports in general as well as for different sub-samples including soccer, motor sports, and different regions. The results of the event study provide evidence that sport sponsorship announcements positively impact stock returns, but this impact differs among sports and regions. The regression results reveal that abnormal returns are significantly higher for sponsorships on brand level, smaller firms, and deals with national reach. The findings have implications for corporate managers and sport managers as equilibrium prices for sponsorship deals have not yet been reached.
View less >
Journal Title
International Journal of Sport Finance
Volume
7
Issue
3
Publisher URI
Copyright Statement
© 2012 West Virginia University. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Subject
Commerce, Management, Tourism and Services not elsewhere classified
Other Economics
Banking, Finance and Investment