The 2008 Beijing Olympic Sponsorships: Value for Money?

16 Pages Posted: 27 Jul 2010 Last revised: 8 Oct 2010

See all articles by Alexander Molchanov

Alexander Molchanov

Massey University

Philip A. Stork

Vrije Universiteit Amsterdam, School of Business and Economics; Tinbergen Institute

Victor Zeng

affiliation not provided to SSRN

Date Written: October 6, 2010

Abstract

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

Suggested Citation

Molchanov, Alexander and Stork, Philip A. and Zeng, Cheng, The 2008 Beijing Olympic Sponsorships: Value for Money? (October 6, 2010). Available at SSRN: https://ssrn.com/abstract=1649132 or http://dx.doi.org/10.2139/ssrn.1649132

Alexander Molchanov

Massey University ( email )

Auckland
New Zealand

Philip A. Stork (Contact Author)

Vrije Universiteit Amsterdam, School of Business and Economics ( email )

De Boelelaan 1105
Amsterdam, 1081HV
Netherlands

Tinbergen Institute ( email )

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

Cheng Zeng

affiliation not provided to SSRN ( email )

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