Stock market reaction on Olympic sponsorship announcement using event-study method

G. Spais, G. Filis

Research output: Contribution to journalArticlepeer-review

Abstract

The major objective of this study is to test if an Olympic Games sponsorship program can influence investors' behavior: stock returns, stock volatility and transaction volumes. The paper deals with stock market reaction on Olympic sponsorship announcement for service organizations using event-study method. Our research intention is to test 440 daily stock prices and transaction volumes, in order investigate the potent influence between the announcement of a grand sport sponsorship program and investors' behavior. For this study we examined the announcement data of three grand sponsors of Olympic Games of Athens 2004 (Alpha Bank, Delta and G.T.O.). The main contribution of this study is to examine how stock investors' behavior is influenced by the sponsorship program of companies and to extend research scope of marketing field toward stock market. They authors suggest that organizations interested in influencing investors' behavior should invest in sponsorship activities at the sports' sector.
Original languageEnglish
Pages (from-to)95-108
Number of pages14
JournalJournal of Global Academy of Marketing Science
Volume16
Issue number2
DOIs
Publication statusPublished - 2006

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