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Journal of the Academy of Marketing Science
Published in: Journal of the Academy of Marketing Science 5/2013

01-09-2013 | Original Empirical Research

Are sponsorship announcements good news for the shareholders? Evidence from international stock exchanges

Authors: Marc Mazodier, Amir Rezaee

Published in: Journal of the Academy of Marketing Science | Issue 5/2013

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Abstract

The objective of this study is to analyse investors’ perceptions of sponsorship’s ability to increase brand equity, through the impact of sponsorship announcement on stock market value. An event study method, based on a unique sample of 293 worldwide sponsorship announcements from 2010, shows substantial negative abnormal returns following announcement dates. In addition, a cross-sectional regression analysis reveals the influence of several featured factors. Philanthropic sponsorships and sponsorships of events with distinctive values are less negatively perceived by investors, but US companies exhibit more negative returns in shareholder value than other firms. This study offers no support for varying impacts of event audience, renewal agreement, property sponsorship and title sponsorship on abnormal returns though.
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Appendix
Available only for authorised users
Footnotes
1
Brown and Warner (1985) show there is no significant difference between the abnormal returns derived from their method and previous methods, such as Scholes and Williams’s (1977).
 
2
Campbell and Wasley (1993), Maynes and Rumsey (1993), and Bartholdy et al. (2007) note problems that make standard parametric event study tests poorly specified; the rank test outperforms parametric tests.
 
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Metadata
Title
Are sponsorship announcements good news for the shareholders? Evidence from international stock exchanges
Authors
Marc Mazodier
Amir Rezaee
Publication date
01-09-2013
Publisher
Springer US
Published in
Journal of the Academy of Marketing Science / Issue 5/2013
Print ISSN: 0092-0703
Electronic ISSN: 1552-7824
DOI
https://doi.org/10.1007/s11747-013-0325-x

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