The Impact of International Football Matches on Primary Sponsors and Shareholder Wealth

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Adrien Bouchet University of Tulsa

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Thomas W. Doellman Saint Louis University

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Michael Troilo University of Tulsa

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Brian R. Walkup University of Tulsa

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The effect of sponsorship on the stock market returns of the sponsoring companies has been previously studied, but the internationalizing aspect of sponsorship has been overlooked. We examine returns to shareholders for firms sponsoring international football matches using an event study analysis. We find that there are cumulative abnormal returns to stockholders of sponsoring firms of international matches 10 days after the match and 20 days after the match. This finding is robust across several different event-study methods. We also find this general pattern across different professional football leagues, as well as a positive effect on returns by sponsoring high-profile football clubs. We theorize that the elapsed time until the effect on the stock price is the result of building brand awareness before a shift in the price becomes evident. These findings add nuance to the literature on sponsorship and event studies, which is almost exclusively domestic in character.

Adrien Bouchet is with the Department of Management & Marketing, Collins College of Business, University of Tulsa, Tulsa, Oklahoma. Thomas W. Doellman is with the Department of Finance, John Cook School of Business, Saint Louis University, St. Louis, Missouri. Michael Troilo is with the School of Finance, Operations Management, and International Business, University of Tulsa, Tulsa, Oklahoma.Brian R. Walkup is with the School of Finance, Operations Management & International Business, Collins College of Business, University of Tulsa, Tulsa, Oklahoma. Address author correspondence to Adrien Bouchet at adrien-bouchet@utulsa.edu.

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