Assessing the Market Value of Sponsoring: Corporate Olympic Sponsorships
While the use of event sponsoring, particularly in the form of sports-related sponsorships, is growing at an increasing rate, marketers have had difficulties assessing the value of such advertising strategies. The present research addresses this valuation dilemma by employing event study analysis, a technique common to the finance discipline. In order to assess the market value of corporate sponsorship of the Olympic Games, the effects of sponsorship announcements on changes in firm value are examined. Counter to many critics of Olympic sponsorship, the results provide evidence that this type of event sponsoring is of value to participating firms.