An event study work on the sponsorship agreements in terms of marketing activities

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. Keywords: Event study, aviation management, sponsorship agreements, sports management, reputation management. JEL Codes: G14, M31, Z21