Bryan Engelhardt
Victor Matheson
Alex Yen
and Maxwell Chisolm

Roughly seven years before an Olympic Games, the International Olympic Committee (IOC) accepts bids from countries to host an Olympics. Subsequently, the IOC deter-mines and announces to the world who has won (and lost) the right to host. Contrary to prior evidence, we find the announcements do not affect the bidding countries’ stock markets. We complement prior studies by including additional, more recent, years of announcements, by investigating whether there are effects prior to the announcement, and by testing for an effect both parametrically and nonparametrically.

JEL Codes:...Read more

Dean V. Baim
Levon Goukasian
and Marilyn B. Misch

Using event study methodology, this paper analyzes the capital market behavior related to shares of companies that sponsored the London 2012 Summer Olympic Games. We investigate the existence of abnormal returns and changes in trading volumes on announcement dates for companies at two sponsorship levels—Official Olympic Partners and Official Olympic Supporters. We also test for differential responses between British and non-British firms. We find that London 2012 Olympic sponsorships are associated with statistically significant increased share values for Official Partners as well as for...Read more

Matthias Reiser
Christoph Breuer
Pamela Wicker

This study analyzes the effect of sponsorship announcements on the firm value of sponsoring firms by investigating whether sponsorship announcements have an influence on abnormal returns on share prices. As previous research has neglected sponsorships from different regions and the comparison of sponsorships in different sports, a unique dataset of sponsorship deals between 1999 and 2010 is created (n=629). Using event study methodology the data is analyzed for all sports in general as well as for different sub-samples including soccer, motor sports, and different regions. The results of...Read more

Michael A. Leeds
John M. Mirikitani
Danna Tang

China spent far more on the 2008 Olympiad than any previous host country. A retrospective assessment of the benefits of the 2008 Games to the Chinese economy will not be possible for several years. We use an adaptation of event study methodology that has been employed by studies of previous Olympiads to analyze the expected benefits of the 2008 Games. We show that the announcement that Beijing would host the 2008 Games led to a brief rise in the Shanghai exchange, but the euphoria quickly dissipated. We find that there was no corresponding decline in the stock exchanges of Beijing’s...Read more