Corporate Stadium Sponsorships, Signalling Theory, Agency Conflicts and Shareholder Wealth

Clark, John M.; Cornwell, T. Bettina; Pruitt, Stephen W.

doi:10.2501/jar.42.6.16

Cited by 129 publications

(116 citation statements)

References 0 publications

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“…), firms (market value and price-to-book ratio) and announcements themselves (major newspaper or not) on abnormal returns. While most of the characteristics are not significantly related to announcement-day returns, firms in the technology sector experience positive returns, supporting the arguments of Biswas et al (2006) and Clark et al (2002Clark et al ( , 2009. However, despite an array of previous studies documenting the importance of endorsers' characteristics, our data lends only weak, albeit positive, support for the match-up hypothesis between the celebrity and the endorsed product.…”

Section: Discussionsupporting

confidence: 54%

“…16 This finding is in line with the positive abnormal returns found by Clark et al (2002Clark et al ( , 2009) for sponsorship announcements. Our results thus provide further support for the notion that technology products may benefit relatively strongly from endorsement or sponsoring marketing communication strategies.…”

mentioning

confidence: 52%

“…We refer to Biswas et al (2006) for a study on the differential effect between celebrity and expert endorsements for high-technology oriented products. Further, Clark et al (2002Clark et al ( , 2009) find a positive relationship between abnormal returns and high tech firms announcing a sponsorship. They report that investors may perceive a technology firm's sponsorship announcement as a positive signal because the company is strong enough to bear such usually substantial and long-term marketing costs.…”

Section: Abnormal Stock Returns Around the Endorsement Announcementsmentioning

confidence: 96%

“…Clark et al (2009) use assets as an indicator of firm size and find that large companies benefit more from sponsorship announcements. Firm size is also used in Clark et al (2002) and in Cornwell et al (2001) as a factor. Both these studies find a negative and statistically significant relationship with sponsorship announcements.…”

Section: Abnormal Stock Returns Around the Endorsement Announcementsmentioning

confidence: 99%

See 3 more Smart Citations

The value of celebrity endorsements: A stock market perspective

Ding¹,

Molchanov

Stork

2010

Mark Lett

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Are celebrity endorsements worthwhile investments in advertising? To answer this question, we analyze a unique sample of 101 announcements made between 1996 and 2008 by firms listed in the USA. Internet is the main medium of communication for these announcements. We employ event study methodology and document statistically insignificant abnormal returns around the announcement dates. This finding is consistent with the notion that the incremental benefits from celebrity endorsements closely match the incremental costs due to such contracts. Further, we investigate if the announcement date return depends on a number of characteristics that are often used in the endorsement literature. As a result, we find that endorsements of technology industry products coincide with significant positive abnormal returns around the announcement dates. Finally, we find weak support for the match-up hypothesis between celebrities and endorsed products.

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Section: Discussionsupporting

confidence: 54%

mentioning

confidence: 52%

Section: Abnormal Stock Returns Around the Endorsement Announcementsmentioning

confidence: 96%

Section: Abnormal Stock Returns Around the Endorsement Announcementsmentioning

confidence: 99%

See 2 more Smart Citations

The value of celebrity endorsements: A stock market perspective

Ding¹,

Molchanov

Stork

2010

Mark Lett

View full text Add to dashboard Cite

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“…Moreover, many spfonsorships come with particular social alliances that must be considered, especially when sponsorship deals are contrary to the desires of established groups, as was seen in a number of stadiumnaming sponsorships in the 1990s (Clark, Cornwell, and Pruitt 2002). On the positive side, existing strong alliances may support sponsorship goals when sponsors are accepted via the identification process and fan loyalty is translated to brand loyalty.…”

Section: Social Alliancesmentioning

confidence: 99%

Sponsorship-Linked Marketing: Opening the Black Box

Cornwell

Weeks

Roy

2005

Journal of Advertising

Self Cite

503

397

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Sponsorship of sports, arts, and causes has become a mainstream marketing communications tool. A great deal of fieldwork has attempted to gauge the relative effectiveness of sponsorship in a marketing context, but these weakly controlled field studies contribute little to our understanding of how individuals process sponsorship-linked marketing communications. By considering possible underlying information-processing mechanics, individual-and group-level factors, market factors, and management factors, together with theorized sponsorship outcomes, this paper offers a model of consumer-focused sponsorship-linked marketing communications that summarizes and extends theoretical understanding of the topic.

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