The Worth Of Sport Event Sponsorship A

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Journal of Management and Marketing Research

The worth of sport event sponsorship: an event study
Jin-Woo Kim
The University of Texas at Arlington
The authors investigate the relationship between sports-related event sponsorship and stock market valuation and identify factors that influence the financial rewards of sponsorship using World Cup and PGA tour sponsorship data. In particular, relationship between sports sponsorship with financial performance is examined in terms of sponsorship fit, event characteristics, and brand equity. Event study results show that sponsorship for World Cup and
PGA is positively related to abnormal stock returns for sponsors but not every sponsor enjoys significantly positive cumulative abnormal
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Sports sponsorship makes it possible to link the aspiration and passion of a target audience to specific sports (Arun, 2004). In general, sponsorship holds a unique position in the marketing mix because it is effective in building brand awareness, providing differentiated marketing platforms, facilitating direct business benefits and providing valuable networking and hospitality opportunities (ADREVIEW). The number of companies sponsoring events has increased over the past decade.
However, it is somewhat unclear how the effectiveness of event marketing activities can be measured. As mentioned earlier, approach to sports sponsorship can be divided into two

The worth of sport, Page 2

Journal of Management and Marketing Research research stream (see Table 1). One is the consumer psychology approach which incorporates effect of sports sponsorship in terms of consumers’ awareness, recognition, and behavioral intentions. The other approach focuses on grasping the potential contribution of sports sponsorship to positive or negative changes in stock price. The effect of sponsorship on firm value in the stock market can be investigated in financial perspective.

psychologic al approach

Table 1. Literature Review on Sponsorship Effects
Speed and
Conceptual framework about the effect of
sponsor-event fit, perceived sincerity of the
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