PT  - JOURNAL ARTICLE
AU  - Joe Cobbs
AU  - Mark D. Groza
AU  - Stephen W. Pruitt
TI  - Warning Flags on the Race Track
AID  - 10.2501/JAR-52-1-074-086
DP  - 2012 Mar 01
TA  - Journal of Advertising Research
PG  - 74--86
VI  - 52
IP  - 1
4099  - http://www.journalofadvertisingresearch.com/content/52/1/74.short
4100  - http://www.journalofadvertisingresearch.com/content/52/1/74.full
SO  - J Advert Res2012 Mar 01; 52
AB  - The globalization of media content has encouraged the growth of cross-cultural promotional channels. Yet, empirical evaluations of advertising strategies at an international level are sparse. This study advances research in this emerging area by analyzing the global financial markets' valuation of commercial sponsorships in Formula One (F1) motor racing. Although previous research indicated that U.S. markets have approved of similar promotional investments, the results of this international event study demonstrated that the market value of firms entering into F1 sponsorships decline upon announcement. The level of investment and nationality congruence of the sponsorship appear to enhance the probability for negative returns in shareholder value.