The 2008 Beijing Olympic Sponsorships: Value for Money?
16 Pages Posted: 27 Jul 2010 Last revised: 8 Oct 2010
Date Written: October 6, 2010
Sports-related event sponsoring has rapidly grown into a key ingredient of the marketing communications mix. We use event study methodology to assess the net economic value of 2008 Beijing Olympic Games sponsorships. We find that investors judge the benefits that accrue to sponsoring companies to be commensurate with the expenses, as evidenced by insignificant announcement date abnormal returns. Furthermore, on the Games opening ceremony date the domestic sponsors’ share prices fall significantly while the international sponsors on average experience positive returns. The domestic firms’ sponsorship decision may have been based on national pride and emotional commitment, rather than on profit maximization.
Keywords: Corporate Sponsorship, Beijing Olympics, Event Study
JEL Classification: G14, M37
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