Click on the PDF link for the complete article.
ABSTRACT
Contrary to the plethora of critical articles recently appearing in both the popular and business press, this carefully controlled investigation of 49 stadium-and arena-naming-rights agreement announcements provides striking evidence that such sponsorships can significantly enhance the stock prices of sponsoring companies. Inded, the results of the study show that the average staium sponsor's stock prices increased by 1.65 percent at the time of announcement of the programs - a result considerable in excess of the returns associated with other major marketing programs such as the signing of Olympic sponsorships and celebrity endorsers. A multiple regression analysis employing firm-specific changes in stock prices as the dependent variable and quantifiable corporate and sponsorship-related atributes as independent variables is also presented. Variables positively and significantly correlated with perceived sponsorship success include team-winning percentages, contract length, and high technology and locally based companies. Overall, the findings of the study are consistent with the novel hypothesis that, for some firms, the real value-added of a stadium sponsorship may lie in its ability to serve as an effective or ‘honest’ signal of managerial confidence in the future of the company.
- © Copyright Advertising Research Foundation 2002
ARF MEMBERS
If you are a member of the Advertising Research Foundation, you can access the content by logging in here
Log In
Pay Per Article - You may access this article (from the computer you are currently using) for 30 days for US$20.00
Regain Access - You can regain access to a recent Pay per Article purchase if your access period has not yet expired.