The NASCAR phenomenon: Auto racing sponsorships and shareholder wealth

Pruitt, Stephen W., Cornwell, T. Bettina and Clark, John M. (2004) The NASCAR phenomenon: Auto racing sponsorships and shareholder wealth. Journal of Advertising Research, 44 3: 281-296. doi:10.1017/S0021849904040279

Author Pruitt, Stephen W.
Cornwell, T. Bettina
Clark, John M.
Title The NASCAR phenomenon: Auto racing sponsorships and shareholder wealth
Journal name Journal of Advertising Research   Check publisher's open access policy
ISSN 0021-8499
Publication date 2004-09
Sub-type Article (original research)
DOI 10.1017/S0021849904040279
Volume 44
Issue 3
Start page 281
End page 296
Total pages 16
Editor J. T. Plummer
Place of publication New York, NY, U.S.A.
Publisher World Advertising Research Center
Collection year 2004
Language eng
Subject C1
350204 Marketing and Market Research
720401 Marketing
1505 Marketing
350200 Business and Management
350000 Commerce, Management, Tourism and Services
Abstract This study presents the first analysis of the impact of NASCAR sponsorship announcements on the stock prices of sponsoring firms. The primary finding of the study-that NASCAR sponsorship announcements were accompanied by the largest increases in shareholder wealth ever recorded in the marketing literature in response to a voluntary marketing program-represents a striking and unambiguous stock market endorsement of the sponsorships. Indeed, the 24 sponsors analyzed in this study experienced mean increases in shareholder wealth of over $300 million dollars, net of all of the costs associated with the sponsorships. A multiple regression analysis of firm-specific stock price changes and select corporate and sponsorship attributes indicates that NASCAR sponsorships with more successful racing teams, corporate (as opposed to product or divisional) sponsorships, and sponsorships with direct ties to the consumer automotive industry are all positively correlated with perceived sponsorship success, while corporate cash flow per share (a well-known proxy for agency conflicts within the firm) is negatively related with shareholder approval.
Keyword Business
Benefits of sponsors
Culture of sport games
Q-Index Code C1

Document type: Journal Article
Sub-type: Article (original research)
Collections: Excellence in Research Australia (ERA) - Collection
2005 Higher Education Research Data Collection
UQ Business School Publications
Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 33 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 48 times in Scopus Article | Citations
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Created: Wed, 15 Aug 2007, 04:23:34 EST