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

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  • 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
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    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.

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