Abstract
ABSTRACTResearch question: This paper investigates how football sponsorship influences the financial performance of sponsors. We suggest a new instrumental variable (IV) to avoid endogeneity.Research methods: We use an IV regression framework combined with a fixed effects model. The number of tweets containing both team and sponsor names are collected to use as the IV.Results and findings: We analyze top European leagues. Our results show that football sponsorship is more charity than commercial investment. The analysis of determinants of becoming a sponsor and sponsorship amount shows that companies owned by individuals are more likely to become a sponsor.Implications: Shareholders should be aware of sponsorship deals, and senior management should analyze the financial assumptions of such projects carefully.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.