This study compares the effect of sports sponsorship announcements on the stock returns of sponsors and their rivals between Japan and the United States. Event study analyses reveal that, whereas stock market reactions for Japanese sponsors were significantly positive during 1999-2010, those for their rivals were significantly negative. In the United States, however, both sponsors and rivals experienced increased market value. Sports sponsorships thus might be useful for sponsors to establish a competitive advantage over rivals in Japan, but not in the United States.
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