tailieunhanh - The worth of sport event sponsorship: an event study

The authors investigate the relationship between sports-related event sponsorship and stock market valuation and identify factors that influence the financial rewards of sponsorship using World Cup and PGA tour sponsorship data. In particular, relationship between sports sponsorship with financial performance is examined in terms of sponsorship fit, event characteristics, and brand equity. Event study results show that sponsorship for World Cup and PGA is positively related to abnormal stock returns for sponsors but not every sponsor enjoys significantly positive cumulative abnormal returns. Regression analysis indicates that unexpectedly brand equity and . country of origin is negatively associated with financial performance. However, . sponsors with top brand value boost. | Journal of Management and Marketing Research The worth of sport event sponsorship an event study Jin-Woo Kim The University of Texas at Arlington Abstract The authors investigate the relationship between sports-related event sponsorship and stock market valuation and identify factors that influence the financial rewards of sponsorship using World Cup and PGA tour sponsorship data. In particular relationship between sports sponsorship with financial performance is examined in terms of sponsorship fit event characteristics and brand equity. Event study results show that sponsorship for World Cup and PGA is positively related to abnormal stock returns for sponsors but not every sponsor enjoys significantly positive cumulative abnormal returns. Regression analysis indicates that unexpectedly brand equity and . country of origin is negatively associated with financial performance. However . sponsors with top brand value boost their abnormal stock return. Product fit enhances short-term financial performance but the significant impact of event type on financial outcome was not observed. Keywords sports sponsorship sports marketing event study brand equity sponsorship fit The worth of sport Page 1 Journal of Management and Marketing Research Introduction Many companies make investment to sponsor the big sports events such as Olympic World Cup and popular sports games. Although being official sponsor requires a huge amount of financial resource it is expected to create more favorable outcomes including profit increase improved stock returns and positive advertising effect. While sports sponsorships were of the size of advertising expense in 1985 they were of the size in 2006 BMI Sport info . Coca-Cola spent 40 million to become an official sponsor of 1996 Olympic Games and an estimated 500 million to maintain this sponsor status Shani and Sandler 1996 . Sponsorship opportunities are increasing for companies to connect their brands with the world s most .