Title Sponsorships in Sports events and stock price behavior: Evidence from Pakistan Super League
Abstract
ABSTRACT
The purpose of this study is to examine stock price behaviour of Habib Bank Ltd following title sponsorship announcements and events of Pakistan Super League. For this purpose, secondary data collected relating to Pakistan Super League and HBL Stock prices from 2015 to 2019 by applying an event study methodology. The results of the event study analysis of title sponsorship announcement revealed significant increases in stock prices of the Habib Bank, Ltd around the announcement and the event days, however, no significant positive changes were noticed after the renewal of aforementioned sponsorship announcement. Moreover, the results also showed no significant influence in the case of renewal of the said title sponsorship on the stock prices behaviour during the pre and post-event windows. Hence, this study results suggested that the sponsoring firm should focus on its marketing strategies to effectively promote its sponsorship campaign and to capture investor’s attention in the market during the event days. This study contributes to the existing literature as being the first study on title sponsorship announcements and renewals of Pakistan Super League and its effect on the stock price behaviour of Habib Bank, limited.
Keywords: Title Sponsorship, Pakistan Super League, Stock Prices, Event Study.
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Copyright (c) 2021 Furqan Ullah, Hamid Ullah, Faiza Mahreen
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