Do sport sponsorship announcements help or hurt rival sponsors’ market values? Comparing stock returns of sport sponsors and their rivals in the United States and Japan

Fumiko Takeda

This study compares the effect of sports sponsorship announcements on the stock returns of sponsors and their rivals between Japan and the United States.
Takeda

Management Slant

  • Market reactions to sports sponsorship announcements are significantly positive for sponsors, whereas those for rivals are significantly negative in Japan from 1999 to 2010.
  • Both sponsors and rivals experience increased market value in the United States.
  • Sponsorships might be useful for sponsors to establish a competitive advantage over their rivals in Japan, but not in the United States.
  • Market responses for sponsors are significantly positive when events are held in domestic markets in Japan and the United States.

Introduction

This study compares the effect of sports sponsorship on the market value of sponsors and their rivals between...

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