The Stock Market Performances Of Chinese Companies Sponsoring Major International Sports Events

In recent years, as the events held in China one by one, the big international sports events in China have received attention and enthusiasm degree is higher and higher. London held the Olympic Games, lit the Chinese enthusiasm for sport is further, also caught the attention of the audience for Olympic sponsors. At present, corporate sponsorship has become a major international sports event one of the indispensable source of funds and materials. Companies hope that through huge sponsorship fee, can make the enterprise value, brand awareness, enterprises, the performance of the improved. Enterprise through sponsorship, however, is not really achieve the desired effect, gust of sporting event sponsorship accept recently do not cover the news gives the answer, and thought-provoking. Thus, for enterprises sponsoring big sports events have scientific and reasonable evaluation is very necessary and meaningful. This paper hope through to the sponsorship effect, the empirical analysis of corporate sponsorship effects measures of large sporting events received and provide some Suggestions for reference, also hope to be able to contribute to the rational regression of sports sponsorship market. To evaluate effects of corporate sponsorship, should choose a scientific method to measure. Due to the enterprise value, brand awareness, etc. It is difficult to quantify analysis, this paper studies sponsored by trying to enterprise performance and changes in the capital market to measure corporate sponsorship effects. In an efficient capital market, all of the information in the stock market has a good reflect. So you can select more developed H shares of the stock market to measure the effect of corporate sponsorship of large international sports events.This paper use event study analysis the sponsor of the Beijing Olympic Games, Guangzhou Asian games and Shenzhen Universiade and the London Olympics, became the official event sponsors and signed the relevant events, on the stock market reaction. Measuring sponsored enterprises on the stock market reaction, mainly through the average abnormal return and the average cumulative abnormal return of these two indicators to measure. At the same time, it is a combination of liquidity, trading volume and volatility of the three indicators. After calculation, found that both get sponsorship or related events during the opening period, the average abnormal return sponsors are not significant, slightly fluctuations up and down near zero. And sponsorship enterprise during the period of announcement date and the opening day, the average cumulative abnormal returns have been negative, and the absolute value of the average cumulative abnormal return as time accumulation increased gradually. From sponsorship enterprise sponsorship the20days before the announcement, the market has had a negative reaction, and had a lasting impact on enterprise performance. While the event opening, from the opening day, after the market had a negative reaction. Suggesting that sponsored enterprises in obtaining sponsorship before announcement day, the market has a negative expectation, which suggests that enterprises obtain sponsorship news has been leaked prior to the announcement of the day. Through the calculation of volatility, trading volume, liquidity, can draw sponsoring big sports events did not improve or even damage the enterprise value, because enterprises have the three indicators are different degree of degradation. And enterprises in the support effect exist in the process of learning, behind events impact on enterprises have improved.The empirical result shows that the enterprise cost a lot of manpower, material and financial resources to support large-scale sports event, is not the behavior of the market is very recognition, companies should be paid attention to in the sports sponsorship marketing strengths, careful investment.