Effects of sports sponsorship in Singapore on firm share price: An exploratory approach
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Sponsorship has become a pivotal part of the marketing mix in many corporate businesses. In 2010, combined total value of global sports sponsorship exceeded US$ 46 billion, with an anticipated 5% growth in the following year. In Singapore, the combined values of sports sponsorship have increased by S$3 million (2%) to a total of S$108 million from 2011 to 2013. It is thus evident that there is an increasing trend for sports sponsorship with great potential and positive growth in both global and local sports sponsorship in the upcoming years. In addition, the opening of Singapore Sports Hub and the hosting of 28th South East Asian games in 2015 create a great opportunity to study the effects of sponsorship in Singapore. In order to justify the significant resources poured in sports sponsorship, this study aims to investigate the effectiveness of sports sponsorship through measuring the share price changes of firms involved in sponsorship. A total of 23 sports sponsorship announcements made from January 2009 to March 2015 were analyzed. An insignificant finding across the seven-day trading window selected in this study may suggest that sports sponsorship does not result in a positive share price increase for the sponsors. The results suggest that investors and the market do not view sports sponsorship announcements favorably. Therefore, no share price reaction was recorded following sponsorship announcement during this study.
Abstract
Sponsorship has become a pivotal part of the marketing mix in many corporate businesses. In 2010, combined total value of global sports sponsorship exceeded US$ 46 billion, with an anticipated 5% growth in the following year. In Singapore, the combined values of sports sponsorship have increased by S$3 million (2%) to a total of S$108 million from 2011 to 2013. It is thus evident that there is an increasing trend for sports sponsorship with great potential and positive growth in both global and local sports sponsorship in the upcoming years. In addition, the opening of Singapore Sports Hub and the hosting of 28th South East Asian games in 2015 create a great opportunity to study the effects of sponsorship in Singapore. In order to justify the significant resources poured in sports sponsorship, this study aims to investigate the effectiveness of sports sponsorship through measuring the share price changes of firms involved in sponsorship. A total of 23 sports sponsorship announcements made from January 2009 to March 2015 were analyzed. An insignificant finding across the seven-day trading window selected in this study may suggest that sports sponsorship does not result in a positive share price increase for the sponsors. The results suggest that investors and the market do not view sports sponsorship announcements favorably. Therefore, no share price reaction was recorded following sponsorship announcement during this study.
참고문헌 (34)
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