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Soccer Sponsor: Fan Or Businessman?

Author

Listed:
  • Iuliia Naidenova

    (National Research University Higher School of Economics)

  • Petr Parshakov

    (National Research University Higher School of Economics)

  • Alexey Chmykhov

    (National Research University Higher School of Economics)

Abstract

This paper investigates how soccer sponsorship influences the financial performance of sponsors. We use an instrumental variable regression framework combined with a fixed effects model to avoid the possible endogeneity raised by omitted variables and reverse causality. The number of tweets containing both team and sponsor names were collected to use as the instrumental variable. Top European leagues were analyzed. Our results show that soccer sponsorship is more charity than commercial investment. Shareholders should be aware of sponsorship deals, and senior management should analyze the financial assumptions of cash flow forecasting for such projects carefully.

Suggested Citation

  • Iuliia Naidenova & Petr Parshakov & Alexey Chmykhov, 2014. "Soccer Sponsor: Fan Or Businessman?," HSE Working papers WP BRP 28/FE/2014, National Research University Higher School of Economics.
    • Handle: RePEc:hig:wpaper:28/fe/2014
    as

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    File URL: http://www.hse.ru/data/2014/03/03/1330161003/28FE2014.pdf
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    References listed on IDEAS

    as
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    4. Sneath, Julie Z. & Finney, R. Zachary & Close, Angeline Grace, 2005. "An IMC Approach to Event Marketing: The Effects of Sponsorship and Experience on Customer Attitudes," Journal of Advertising Research, Cambridge University Press, vol. 45(4), pages 373-381, December.
    5. Joao F. Gomes, 2001. "Financing Investment," American Economic Review, American Economic Association, vol. 91(5), pages 1263-1285, December.
    6. Deitz, George D. & Evans, Robert D. & Hansen, John D., 2013. "Sponsorship and shareholder value: A re-examination and extension," Journal of Business Research, Elsevier, vol. 66(9), pages 1427-1435.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    soccer; sponsorship; instrumental variable; twitter;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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