IDEAS home Printed from https://ideas.repec.org/a/taf/rsmrxx/v23y2020i3p401-413.html
   My bibliography  Save this article

Market reactions to sport sponsorship announcements: Comparison between sponsors and their rivals

Author

Listed:
  • Yuta Hino
  • Fumiko Takeda

Abstract

•Market responses to sport sponsorship announcements are positive for sponsors.•National congruence is positively related to market reactions.•Market responses to sport sponsorship announcements are negative for rivals in Japan.•Market reactions for sponsors are negative for events held for 2010–2014 in Japan.In this study, the authors investigate the impact of sport sponsorship announcements on the stock prices of sponsors and their rivals in Japan. The event study analyses show that while market reactions for Japanese sponsors are significantly positive, those for rivals are significantly negative. Thus, in Japan, sponsorships might help sponsors build a competitive advantage over their rivals. During 2010–2014, market reactions for sponsors are significantly more negative but less so when the sponsored party is Japanese.

Suggested Citation

  • Yuta Hino & Fumiko Takeda, 2020. "Market reactions to sport sponsorship announcements: Comparison between sponsors and their rivals," Sport Management Review, Taylor & Francis Journals, vol. 23(3), pages 401-413, July.
    • Handle: RePEc:taf:rsmrxx:v:23:y:2020:i:3:p:401-413
    DOI: 10.1016/j.smr.2019.02.002
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1016/j.smr.2019.02.002
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1016/j.smr.2019.02.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. John Clark & T. Cornwell & Stephen Pruitt, 2009. "The impact of title event sponsorship announcements on shareholder wealth," Marketing Letters, Springer, vol. 20(2), pages 169-182, June.
    2. Marc Mazodier & Dwight Merunka, 2012. "Achieving brand loyalty through sponsorship: the role of fit and self-congruity," Post-Print hal-01822308, HAL.
    3. Fudenberg, Drew & Tirole, Jean, 1984. "The Fat-Cat Effect, the Puppy-Dog Ploy, and the Lean and Hungry Look," American Economic Review, American Economic Association, vol. 74(2), pages 361-366, May.
    4. Bulow, Jeremy I & Geanakoplos, John D & Klemperer, Paul D, 1985. "Multimarket Oligopoly: Strategic Substitutes and Complements," Journal of Political Economy, University of Chicago Press, vol. 93(3), pages 488-511, June.
    5. Erik Lie, 2001. "Detecting Abnormal Operating Performance: Revisited," Financial Management, Financial Management Association, vol. 30(2), Summer.
    6. Bradley T. Shapiro, 2018. "Positive Spillovers and Free Riding in Advertising of Prescription Pharmaceuticals: The Case of Antidepressants," Journal of Political Economy, University of Chicago Press, vol. 126(1), pages 381-437.
    7. Fama, Eugene F. & French, Kenneth R., 1993. "Common risk factors in the returns on stocks and bonds," Journal of Financial Economics, Elsevier, vol. 33(1), pages 3-56, February.
    8. Barber, Brad M. & Lyon, John D., 1996. "Detecting abnormal operating performance: The empirical power and specification of test statistics," Journal of Financial Economics, Elsevier, vol. 41(3), pages 359-399, July.
    9. Nada Ben Elhadj & Rim Lahmandi-Ayed & Didier Laussel, 2014. "Advertising Spillovers and Market Structure," Recherches économiques de Louvain, De Boeck Université, vol. 80(3), pages 51-98.
    10. Hiroyuki Nakata, 2011. "Informative advertising with spillover effects," International Journal of Economic Theory, The International Society for Economic Theory, vol. 7(4), pages 373-386, December.
    11. Pruitt, Stephen W. & Cornwell, T. Bettina & Clark, John M., 2004. "The NASCAR Phenomenon: Auto Racing Sponsorships and Shareholder Wealth," Journal of Advertising Research, Cambridge University Press, vol. 44(3), pages 281-296, September.
    12. Bagwell, Kyle, 2007. "The Economic Analysis of Advertising," Handbook of Industrial Organization, in: Mark Armstrong & Robert Porter (ed.), Handbook of Industrial Organization, edition 1, volume 3, chapter 28, pages 1701-1844, Elsevier.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Giampiero Maci & Vincenzo Pacelli & Elisabetta D'Apolito, 2021. "Societ〠Di Calcio Europee Quotate E Mercati Finanziari: Un'Analisi Empirica Sulle Determinanti Dei Corsi Azionari," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, vol. 17(2), pages 69-90, novembre.
    2. Tapas Ranjan Moharana & Debashree Roy & Garima Saxena, 2023. "Brand sponsorship effectiveness: how self-congruity, event attachment, and subjective event knowledge matters to sponsor brands," Journal of Brand Management, Palgrave Macmillan, vol. 30(5), pages 432-448, September.
    3. Cuesta-Valiño, Pedro & Gutiérrez-Rodríguez, Pablo & Loranca-Valle, Cristina, 2022. "Sponsorship image and value creation in E-sports," Journal of Business Research, Elsevier, vol. 145(C), pages 198-209.
    4. Yuki Suenaga & Fumiko Takeda, 2021. "The Impact of Postponing the Olympics on Stock Markets," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 27(3), pages 219-232, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aslan, Hadiye & Kumar, Praveen, 2016. "The product market effects of hedge fund activism," Journal of Financial Economics, Elsevier, vol. 119(1), pages 226-248.
    2. Konan Chan & John W. Cooney & Joonghyuk Kim & Ajai K. Singh, 2008. "The IPO Derby: Are There Consistent Losers and Winners on This Track?," Financial Management, Financial Management Association International, vol. 37(1), pages 45-79, March.
    3. Hung, Weifeng & Chiao, Chaoshin & Liao, Tung Liang & Huang, Sheng-Tang, 2012. "R&D, risks and overreaction in a market with the absence of the book-to-market effect," International Review of Economics & Finance, Elsevier, vol. 22(1), pages 11-24.
    4. Belleflamme,Paul & Peitz,Martin, 2015. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9781107687899, January.
    5. Chen, Sheng-Syan & Ho, Kim Wai & Huang, Chia-Wei & Wang, Yanzhi, 2013. "Buyback behavior of initial public offering firms," Journal of Banking & Finance, Elsevier, vol. 37(1), pages 32-42.
    6. Dmitri Boreiko & Maurizio Murgia, 2013. "European spin-offs Origin, value creation, and long-term performance," BEMPS - Bozen Economics & Management Paper Series BEMPS05, Faculty of Economics and Management at the Free University of Bozen.
    7. Massa, Massimo & Rehman, Zahid & Vermaelen, Theo, 2007. "Mimicking repurchases," Journal of Financial Economics, Elsevier, vol. 84(3), pages 624-666, June.
    8. Arena, Matteo P. & Ferris, Stephen P., 2007. "When managers bypass shareholder approval of board appointments: Evidence from the private security market," Journal of Corporate Finance, Elsevier, vol. 13(4), pages 485-510, September.
    9. Juan‐Pablo Montero & Juan Ignacio Guzman, 2010. "Output‐Expanding Collusion In The Presence Of A Competitive Fringe," Journal of Industrial Economics, Wiley Blackwell, vol. 58(1), pages 106-126, March.
    10. Fu, Fangjian & Lin, Leming & Officer, Micah S., 2013. "Acquisitions driven by stock overvaluation: Are they good deals?," Journal of Financial Economics, Elsevier, vol. 109(1), pages 24-39.
    11. Lau, Sau-Him Paul, 2001. "Aggregate Pattern of Time-dependent Adjustment Rules, II: Strategic Complementarity and Endogenous Nonsynchronization," Journal of Economic Theory, Elsevier, vol. 98(2), pages 199-231, June.
    12. Leandro Arozamena & Estelle Cantillon, 2004. "Investment Incentives in Procurement Auctions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 71(1), pages 1-18.
    13. Ettore Croci, 2007. "Corporate Raiders, Performance and Governance in Europe," European Financial Management, European Financial Management Association, vol. 13(5), pages 949-978, November.
    14. Bagwell, Kyle & Wolinsky, Asher, 2002. "Game theory and industrial organization," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 3, chapter 49, pages 1851-1895, Elsevier.
    15. Rüdiger Fahlenbrach & Angie Low & René M. Stulz, 2010. "The Dark Side of Outside Directors: Do they Quit When They are Most Needed?," Swiss Finance Institute Research Paper Series 10-17, Swiss Finance Institute.
    16. An Yan & Debarshi Nandy & Thomas Chemmanur, 2004. "Why Issue Mandatory Convertibles? Theory and Empirical Evidence," Econometric Society 2004 North American Winter Meetings 456, Econometric Society.
    17. Boyce, John R. & Vojtassak, Lucia, 2008. "An 'oil'igopoly theory of exploration," Resource and Energy Economics, Elsevier, vol. 30(3), pages 428-454, August.
    18. Jay R. Ritter & Ivo Welch, 2002. "A Review of IPO Activity, Pricing, and Allocations," Journal of Finance, American Finance Association, vol. 57(4), pages 1795-1828, August.
    19. Prezas, Alexandros P. & Simonyan, Karen & Vasudevan, Gopala, 2010. "Does offshoring create value for shareholders?," Review of Financial Economics, Elsevier, vol. 19(4), pages 179-191, October.
    20. Farruggio, Christian & Michalak, Tobias C. & Uhde, Andre, 2013. "The light and dark side of TARP," Journal of Banking & Finance, Elsevier, vol. 37(7), pages 2586-2604.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rsmrxx:v:23:y:2020:i:3:p:401-413. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rsmr .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.