Corporate Stadium Sponsorships, Signalling Theory, Agency Conflicts and Shareholder Wealth
John M. ClarkUniversity of Missouri – Kansas CityT. Bettina CornwellUniversity of QueenslandandStephen W. PruittUniversity of Missouri – Kansas City
A recent Business Week article, titled 'The Stadium Effect,' suggested that corporate sponsorships of athletic stadiums 'may not be a championship move.'[1]The presented data seemed unequivocal. Indeed, the unnamed author(s) noted that '(a)n examination of 60 deals – football, basketball, baseball, and hockey teams – found that sponsoring companies' stock prices declined by 22% on...