Research Article
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Year 2023, Volume: 10 Issue: 2, 53 - 61, 30.06.2023
https://doi.org/10.17261/Pressacademia.2023.1742

Abstract

References

  • Becker-Olsen, K. (2003). Questioning the name game: An event study analysis of stadium naming rights sponsorship announcements. International Journal of Sports Marketing and Sponsorship, 5(3), 9-20.
  • Binder, J. (1998). The event study methodology since 1969. Review of Quantitative Finance and Accounting, 11(2), 111-137.
  • Borah, A., & Tellis, G. J. (2014). Make, buy, or ally? Choice of and payoff from announcements of alternate strategies for innovations. Marketing Science, 33(1), 114–133.
  • Boyd, D. E., Chandy, R. K., & Cunha Jr., M. (2010). When do chief marketing officers affect firm value? A customer power explanation. Journal of Marketing Research, 47(6), 1162–1176.
  • Cheney, P. K., Devinney, T. M., & Winer, R. S. (1991). The impact of new product introductions on the market value of firms. The Journal of Business, 64(4), 573–610.
  • Cornwell, T. (1995). Sponsorship-linked marketing development. Sport Marketing Quarterly. 4. 13-24.
  • Cornwell, T. B., Pruitt, S. W., & Clark, J. M. (2005). The relationship between major-league sports’ official sponsorship announcements and the stock prices of sponsoring firms. Journal of the Academy of Marketing Science, 33(4), 401-412.
  • Duong, L. N., Wang, J. X., Wood, L. C., Reiners, T., & Koushan, M. (2021). The value of incremental environmental sustainability innovation in the construction industry: an event study. Construction Management and Economics, 39(5), 398-418.
  • Elberse, A. (2007). The power of stars: do star actors drive the success of movies? Journal of Marketing, 71(4), 102–120.
  • Geyskens, I., Gielens, K., & Dekimpe, M. G. (2002). The market valuation of internet channel additions. Journal of Marketing, 66(2), 102– 119.
  • Homburg, C., Vollmayr, J., & Hahn, A. (2014). Firm value creation through major channel expansions: evidence from an event study in the United States, Germany, and China. Journal of Marketing, 78(3), 38–61.
  • Houston, M. B., & Johnson, S. A. (2000). Buyer–supplier contracts ver[1]sus joint ventures: determinants and consequences of transaction structure. Journal of Marketing Research, 37(1), 1–15.
  • Johnston, M. A. (2007). A review of the application of event studies in marketing. Academy of Marketing Science Review, 2007, 1.
  • Joshi, A. M., & Hanssens, D. M. (2009). Movie advertising and the stock market valuation of studios: a case of great expectations? Marketing Science, 28(2), 239–250.
  • Kalaignanam, K., & Bahadir, S. C. (2013). Corporate brand name changes and business restructuring: is the relationship complementary or substitutive? Journal of the Academy of Marketing Science, 41(4), 456–472.
  • Karniouchina, E. V., Moore, W. L., & Cooney, K. J. (2009). Impact of mad money stock recommendations: merging financial and marketing perspectives. Journal of Marketing, 73(6), 244–266
  • Kim, J. W. (2010). The worth of sport event sponsorship: an event study. Journal of Management and Marketing Research, 5(1), 33-45.
  • Mahasuar, K. (2023). COVID-19 and its impact on Indian construction industry: an event study approach. Construction Management and Economics, 11, 1-17.
  • Mathur, L. K., & Mathur, I. (2000). An analysis of the wealth effects of green marketing strategies. Journal of Business Research, 50(2), 193-200.
  • Mazodier, M., & Rezaee, A. (2013). Are sponsorship announcements good news for the shareholders? Evidence from international stock exchanges. Journal of the Academy of Marketing Science, 41(5), 586–600.
  • Ölçen, O., Pamuk, Y., & Sayılır, Ö. (2022). The Impacts of COVID-19 on the Stock Returns of Supplier Industries of the Civil Aviation Sector: An Event Study. In Digitalization and the Impacts of COVID-19 on the Aviation Industry (pp. 278-294). IGI Global.
  • Raassens, N., Wuyts, S., & Geyskens, I. (2012). The market valuation of outsourcing new product development. Journal of Marketing Research, 49(5), 682–695.
  • Sood, A., & Tellis, G. J. (2009). Do innovations really pay off? Total stock market returns to innovation. Marketing Science, 28(3), 442– 456.
  • Sorescu, A., Chandy, R. K., & Prabhu, J. C. (2007a). Why some acquisitions do better than others: product capital as a driver of long-term stock returns. Journal of Marketing Research, 44(1), 57–72.
  • Sorescu, A., Shankar, V., & Kushwaha, T. (2007b). New product preannouncements and shareholder value: Don’t make promises you can’t keep. Journal of Marketing Research, 44(3), 468–489.
  • Sorescu, A., Warren, N. L., & Ertekin, L. (2017). Event study methodology in the marketing literature: an overview. Journal of the Academy of Marketing Science, 45(2), 186-207.
  • Spais, G. S., & Filis, G. N. (2006). Stock market reaction on Olympic sponsorship announcement using the event-study method. Journal of Global Academy of Marketing Science, 16(2), 95-108.
  • Spais, G. S., & Filis, G. N. (2008). Measuring stock market reaction to sponsorship announcements: The case of Fiat and Juventus. Journal of Targeting, Measurement and Analysis for Marketing, 16(3), 169-180.
  • Swaminathan, V., & Moorman, C. (2009). Marketing alliances, firm networks, and firm value creation. Journal of Marketing, 73(5), 52–69.
  • Swaminathan, V., Murshed, F., & Hulland, J. (2008). Value creation following merger and acquisition announcements: the role of strategic emphasis alignment. Journal of Marketing Research, 45(1), 33–47.
  • Ţiţan, A. G. (2015). The efficient market hypothesis: Review of specialized literature and empirical research. Procedia Economics and Finance, 32, 442-449.
  • Tsiotsou, R. and D. Lalountas, (2005). Applying event study analysis to assess the impact of marketing communication strategies: the case of sponsorship. Applied Financial Economics Letters 1 (4), 259 – 262.
  • Wiles, M. A., Morgan, N. A., & Rego, L. L. (2012). The effect of brand acquisition and disposal on stock returns. Journal of Marketing, 76(1), 38–58.
  • Wu, Q., Luo, X., Slotegraaf, R. J., & Aspara, J. (2015). Sleeping with competitors: the impact of NPD phases on stock market reactions to horizontal collaboration. Journal of the Academy of Marketing Science, 43(4), 490–511.
  • Yen, G., & Lee, C. F. (2008). Efficient market hypothesis (EMH): past, present and future. Review of Pacific Basin Financial Markets and Policies, 11(02), 305-329.

AN EVENT STUDY WORK ON THE SPONSORSHIP AGREEMENTS IN TERMS OF MARKETING ACTIVITIES

Year 2023, Volume: 10 Issue: 2, 53 - 61, 30.06.2023
https://doi.org/10.17261/Pressacademia.2023.1742

Abstract

Purpose- It is well known and clear reality that sponsorships agreements have got great importance, especially in marketing and promotion activities through increasing sales and reputation management. It is asked and proposed whether sponsorship agreements have got an impact on stock returns in this paper or not.
Methodology- Three important events are determined from sports management, and returns are calculated benefiting from data. Adjusted Market Returns (AR) and Cumulative Adjusted Market Returns (CAR) are determined for two different timespans [-5,0,5] and [-10,0,10] and the values are reached. These important events are, i) The first sponsorship of Turkish Airlines agreement with the Euroleague Basketball Championship, ii) The first sponsorship agreement of BEKO with Barcelona Football Team on 01.07.2015, iii) The first sponsorship agreement of Turkish Airlines with the European Champions League Football Tournament on 05.09.2022. And basic and simple OLS Regression with Dummies are utilized for Anticipation days (-5), Event day (0) and Adjustment days(+5).
Findings- It can be said here clearly that Turkish Airlines’ sponsorship agreement with Euroleague has not got any impact on stock returns, like Beko and Barcelona agreement. On the other side, Turkish Airlines’ last agreement with European Champions League had got an important impact on stock returns, especially for 10 days intervals. The change in the stock returns is especially interesting according to different time intervals in the last event. When change is for 5 days interval is negative for event day, for a calculation including 10 days interval it is positive.
Conclusion- This situation can be explained by investors like consumers are beginning to change their behaviours naturally their attitudes, perceptions and intentions toward sponsorship agreements, with interests of Turkish Airlines investors to European Champions League or increasing vulnerability to events like this or football attracted Turkish Airlines investors more than Basketball activities.

References

  • Becker-Olsen, K. (2003). Questioning the name game: An event study analysis of stadium naming rights sponsorship announcements. International Journal of Sports Marketing and Sponsorship, 5(3), 9-20.
  • Binder, J. (1998). The event study methodology since 1969. Review of Quantitative Finance and Accounting, 11(2), 111-137.
  • Borah, A., & Tellis, G. J. (2014). Make, buy, or ally? Choice of and payoff from announcements of alternate strategies for innovations. Marketing Science, 33(1), 114–133.
  • Boyd, D. E., Chandy, R. K., & Cunha Jr., M. (2010). When do chief marketing officers affect firm value? A customer power explanation. Journal of Marketing Research, 47(6), 1162–1176.
  • Cheney, P. K., Devinney, T. M., & Winer, R. S. (1991). The impact of new product introductions on the market value of firms. The Journal of Business, 64(4), 573–610.
  • Cornwell, T. (1995). Sponsorship-linked marketing development. Sport Marketing Quarterly. 4. 13-24.
  • Cornwell, T. B., Pruitt, S. W., & Clark, J. M. (2005). The relationship between major-league sports’ official sponsorship announcements and the stock prices of sponsoring firms. Journal of the Academy of Marketing Science, 33(4), 401-412.
  • Duong, L. N., Wang, J. X., Wood, L. C., Reiners, T., & Koushan, M. (2021). The value of incremental environmental sustainability innovation in the construction industry: an event study. Construction Management and Economics, 39(5), 398-418.
  • Elberse, A. (2007). The power of stars: do star actors drive the success of movies? Journal of Marketing, 71(4), 102–120.
  • Geyskens, I., Gielens, K., & Dekimpe, M. G. (2002). The market valuation of internet channel additions. Journal of Marketing, 66(2), 102– 119.
  • Homburg, C., Vollmayr, J., & Hahn, A. (2014). Firm value creation through major channel expansions: evidence from an event study in the United States, Germany, and China. Journal of Marketing, 78(3), 38–61.
  • Houston, M. B., & Johnson, S. A. (2000). Buyer–supplier contracts ver[1]sus joint ventures: determinants and consequences of transaction structure. Journal of Marketing Research, 37(1), 1–15.
  • Johnston, M. A. (2007). A review of the application of event studies in marketing. Academy of Marketing Science Review, 2007, 1.
  • Joshi, A. M., & Hanssens, D. M. (2009). Movie advertising and the stock market valuation of studios: a case of great expectations? Marketing Science, 28(2), 239–250.
  • Kalaignanam, K., & Bahadir, S. C. (2013). Corporate brand name changes and business restructuring: is the relationship complementary or substitutive? Journal of the Academy of Marketing Science, 41(4), 456–472.
  • Karniouchina, E. V., Moore, W. L., & Cooney, K. J. (2009). Impact of mad money stock recommendations: merging financial and marketing perspectives. Journal of Marketing, 73(6), 244–266
  • Kim, J. W. (2010). The worth of sport event sponsorship: an event study. Journal of Management and Marketing Research, 5(1), 33-45.
  • Mahasuar, K. (2023). COVID-19 and its impact on Indian construction industry: an event study approach. Construction Management and Economics, 11, 1-17.
  • Mathur, L. K., & Mathur, I. (2000). An analysis of the wealth effects of green marketing strategies. Journal of Business Research, 50(2), 193-200.
  • Mazodier, M., & Rezaee, A. (2013). Are sponsorship announcements good news for the shareholders? Evidence from international stock exchanges. Journal of the Academy of Marketing Science, 41(5), 586–600.
  • Ölçen, O., Pamuk, Y., & Sayılır, Ö. (2022). The Impacts of COVID-19 on the Stock Returns of Supplier Industries of the Civil Aviation Sector: An Event Study. In Digitalization and the Impacts of COVID-19 on the Aviation Industry (pp. 278-294). IGI Global.
  • Raassens, N., Wuyts, S., & Geyskens, I. (2012). The market valuation of outsourcing new product development. Journal of Marketing Research, 49(5), 682–695.
  • Sood, A., & Tellis, G. J. (2009). Do innovations really pay off? Total stock market returns to innovation. Marketing Science, 28(3), 442– 456.
  • Sorescu, A., Chandy, R. K., & Prabhu, J. C. (2007a). Why some acquisitions do better than others: product capital as a driver of long-term stock returns. Journal of Marketing Research, 44(1), 57–72.
  • Sorescu, A., Shankar, V., & Kushwaha, T. (2007b). New product preannouncements and shareholder value: Don’t make promises you can’t keep. Journal of Marketing Research, 44(3), 468–489.
  • Sorescu, A., Warren, N. L., & Ertekin, L. (2017). Event study methodology in the marketing literature: an overview. Journal of the Academy of Marketing Science, 45(2), 186-207.
  • Spais, G. S., & Filis, G. N. (2006). Stock market reaction on Olympic sponsorship announcement using the event-study method. Journal of Global Academy of Marketing Science, 16(2), 95-108.
  • Spais, G. S., & Filis, G. N. (2008). Measuring stock market reaction to sponsorship announcements: The case of Fiat and Juventus. Journal of Targeting, Measurement and Analysis for Marketing, 16(3), 169-180.
  • Swaminathan, V., & Moorman, C. (2009). Marketing alliances, firm networks, and firm value creation. Journal of Marketing, 73(5), 52–69.
  • Swaminathan, V., Murshed, F., & Hulland, J. (2008). Value creation following merger and acquisition announcements: the role of strategic emphasis alignment. Journal of Marketing Research, 45(1), 33–47.
  • Ţiţan, A. G. (2015). The efficient market hypothesis: Review of specialized literature and empirical research. Procedia Economics and Finance, 32, 442-449.
  • Tsiotsou, R. and D. Lalountas, (2005). Applying event study analysis to assess the impact of marketing communication strategies: the case of sponsorship. Applied Financial Economics Letters 1 (4), 259 – 262.
  • Wiles, M. A., Morgan, N. A., & Rego, L. L. (2012). The effect of brand acquisition and disposal on stock returns. Journal of Marketing, 76(1), 38–58.
  • Wu, Q., Luo, X., Slotegraaf, R. J., & Aspara, J. (2015). Sleeping with competitors: the impact of NPD phases on stock market reactions to horizontal collaboration. Journal of the Academy of Marketing Science, 43(4), 490–511.
  • Yen, G., & Lee, C. F. (2008). Efficient market hypothesis (EMH): past, present and future. Review of Pacific Basin Financial Markets and Policies, 11(02), 305-329.
There are 35 citations in total.

Details

Primary Language English
Subjects Business Administration
Journal Section Articles
Authors

Begum Maral This is me 0000-0002-0013-0281

Olcay Olcen 0000-0002-4835-1171

Publication Date June 30, 2023
Published in Issue Year 2023 Volume: 10 Issue: 2

Cite

APA Maral, B., & Olcen, O. (2023). AN EVENT STUDY WORK ON THE SPONSORSHIP AGREEMENTS IN TERMS OF MARKETING ACTIVITIES. Journal of Management Marketing and Logistics, 10(2), 53-61. https://doi.org/10.17261/Pressacademia.2023.1742

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