Does Athletes’ Performance Influence a Sponsor's Market Value?

This study examines how sponsored athletes' performance affects a sponsor's stock price reaction in 170 sport events between 1991 and 2017 by using Japanese data. The results show that regardless of the sporting results, stock prices react positively to the participation of athletes selected as a country representative in international tournaments. The positive market responses intensify when the sponsored athletes perform well or when a long-term contract is in place prior to the sport event. In addition, national and functional congruence together is likely to increase the sponsor's stock price