Advertising Exposure and Portfolio Choice: Estimates Based on Sports Sponsorships

57 Pages Posted: 6 Feb 2019 Last revised: 19 Feb 2019

See all articles by Ioannis Branikas

Ioannis Branikas

University of Oregon, Lundquist College of Business, Department of Finance

Date Written: February 1, 2019

Abstract

Product market advertising, by acting as a costly signal of quality, is thought to increase the demand for a company's stock as well as its products. I construct a dataset of publicly traded sports sponsors in the US and develop an instrument for investor exposure to advertising via these sponsorships. I show that investors living in a city where major professional sports teams are sponsored by a given company, local or non-local, are more likely to purchase stocks in that company. The portfolio effects from sports sponsorships are large and suggest that advertising is even more important than local bias.

Keywords: Advertising, Portfolio Choice, Household Finance, Sports Sponsorships, Local Bias

Suggested Citation

Branikas, Ioannis, Advertising Exposure and Portfolio Choice: Estimates Based on Sports Sponsorships (February 1, 2019). 2019 Academic Research Colloquium for Financial Planning and Related Disciplines. Available at SSRN: https://ssrn.com/abstract=3256437 or http://dx.doi.org/10.2139/ssrn.3256437

Ioannis Branikas (Contact Author)

University of Oregon, Lundquist College of Business, Department of Finance ( email )

Lundquist College of Business
1208 University of Oregon
Eugene, OR 97403
United States

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