How does Wall Street react to global sports sponsorship announcements? An analysis of the effect on sponsoring companies' stock market prices

This study aims to analyze the potential ability of sponsorship to create shareholder wealth on the basis of how the announcement of global sports sponsorships affects sponsoring companies' stock market prices.

Management Slant

  • Announcements of global official sponsorships in the 10-year period analyzed showed an overall positive effect on the stock market value of the sponsoring company.
  • This positive reaction decreased over time, perhaps because investors considered the higher fees now associated with global sports sponsorships.

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