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The value of winning: endorsement returns in individual sports

Author

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  • Dirk F. Gerritsen

    (Utrecht University)

  • Saskia van Rheenen

    (Erasmus University)

Abstract

Using the results of 1068 different golf, tennis, and track and field (in particular: running) events, this paper examines the relation between athlete performance and stock returns of firms endorsed by athletes. We find that a tournament victory is associated with significant and positive market-adjusted stock returns for the endorsed clothing brand. Regression analysis reveals that winning is associated with a more positive price reaction than finishing as runner-up. In addition, we find that returns after a victory are significantly higher for endorsed clothing brands than for equipment brands. We did not detect return differences between superstars and regular athletes, nor between frequently endorsed brands and less commonly endorsed brands.

Suggested Citation

  • Dirk F. Gerritsen & Saskia van Rheenen, 2017. "The value of winning: endorsement returns in individual sports," Marketing Letters, Springer, vol. 28(3), pages 371-384, September.
    • Handle: RePEc:kap:mktlet:v:28:y:2017:i:3:d:10.1007_s11002-017-9422-9
    DOI: 10.1007/s11002-017-9422-9
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    References listed on IDEAS

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    Cited by:

    1. Borghesi, Richard & Naranjo, Andy & Ryngaert, Michael, 2022. "What are the odds? Underdog brands are consumer favorites," Economics Letters, Elsevier, vol. 221(C).
    2. Jose A. Martinez & Manuel Ruiz, 2019. "No Short- and Medium-Term Effects of Sport Sponsorship; the Case of Divina Pastora in Professional Basketball," Eurasian Journal of Business and Management, Eurasian Publications, vol. 7(2), pages 1-11.

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    More about this item

    Keywords

    Celebrity endorsement; Athletes; Firm value; Tennis; Golf; Track and field;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

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