Corporate Sport Sponsorship and Stock Returns: Evidence from the NFL

58 Pages Posted: 29 Mar 2014 Last revised: 5 Apr 2015

See all articles by Assaf Eisdorfer

Assaf Eisdorfer

University of Connecticut - Department of Finance

Elizabeth Kohl

University of Cincinnati

Date Written: April 5, 2015

Abstract

Most of the home stadiums/arenas of major-sport teams in the U.S. are sponsored by large publicly traded companies. Using NFL data we find that stock returns to the sponsoring firms are affected by the outcomes of games played in their stadiums. For example, the mean difference between next-day abnormal returns after a win and after a loss of the home team is 50 basis points for Monday night games and 82 basis points for post-season elimination games. Evidence suggests that this effect is partially driven by investor sentiment. The next-day abnormal return is further carried to subsequent days, providing profitable trading strategies.

Keywords: Stock returns; Sport sponsorship

JEL Classification: A12, G12, G14

Suggested Citation

Eisdorfer, Assaf and Kohl, Elizabeth, Corporate Sport Sponsorship and Stock Returns: Evidence from the NFL (April 5, 2015). Available at SSRN: https://ssrn.com/abstract=2417124 or http://dx.doi.org/10.2139/ssrn.2417124

Assaf Eisdorfer (Contact Author)

University of Connecticut - Department of Finance ( email )

School of Business
2100 Hillside Road
Storrs, CT 06269
United States

Elizabeth Kohl

University of Cincinnati ( email )

2925 Campus Green Dr.
Cincinnati, OH 45221-0211
United States

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