FiT Publishing

This study quantifies the negative effects of corruption on sponsors of the Indian Premier League (IPL) and presents unbiased sponsor-linked outcomes as its results. The event study methodology was used for the purpose of measuring the reaction of the Indian shareholders to the unexpected event that was the decision of the Supreme Court of India to ban two teams and several officials from cricketing affairs for life in response to the discovery of corruption. The results of this study show there is an immediate loss in firm value for sponsors that are linked to events and teams proved to...Read more

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

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