Do Headline Events Involving Sponsored Figures Impact A Company's Equity Value?

Abstract

This study focused on returns for publicly-traded companies who engaged in sponsorships and whether those sponsorships impacted the public's confidence in the companies' operational success and therefore the companies' financial performance. To determine how the public reacted to certain events, financial markets stood as a proxy for the public's perception of corporations and the changes associated with certain events. This event study examined the stock returns of corporations before and after the events using certain windows of time to determine whether or not the market believed the events had any bearing on the companies' fundamental values.