Abstract
This article analyzes the relationship between two types of performances, one on the ground (of a tennis court) and the other on the floor (of the stock market). The empirical application looks into the tennis player, Rafael Nadal, and his endorsing firms. The findings show a positive reaction in the market value when the tennis player wins matches in the Grand Slams, the intriguing effect being the diminishing sensitivity pattern that such reaction shows and the absence of loss aversion.
Similar content being viewed by others
Notes
We also control for outliers by applying the 5 % trimming fraction, and the same nonsignificant results are found in the three ANOVAs: F = 0.003 (p = 0.956), F = 1.277 (p = 0.262), F = 0.202 (p = 0.654).
References
Agrawal, J., & Kamakura, W. A. (1995). The economic worth of celebrity endorsers: an event study analysis. Journal of Marketing, 59, 56–62.
Berger, J., Sorensen, A. T., & Rasmussen, S. J. (2010). Positive effects of negative publicity: when negative reviews increase sales. Marketing Science, 29(5), 815–827.
Bollerslev, T. (1986). Generalized autoregressive conditional heteroskedasticity. Journal of Econometrics, 31, 307–327.
Clark, J. M., Cornwell, T. B., & Pruitt, S. W. (2009). The impact of title event sponsorship announcements on shareholder wealth. Marketing Letters, 20, 169–182.
Cornwell, T. B., Pruitt, S. W. and Ness, R. V. (2001). The value of winning in motorsports: sponsorship-linked marketing. Journal of Advertising Research. January–February, 17–31.
Ding, H., Molchanov, A. E., & Stork, P. A. (2011). The value of celebrity endorsements: a stock market perspective. Marketing Letters, 22, 147–163.
Farrell, K. A., & Frame, W. S. (1997). The value of Olympic sponsorships: who is capturing the gold? Journal of Market-Focused Management, 2, 171–182.
Farrell, K. A., Karels, G. V., Monfort, K. W., & McClatchey, C. A. (2000). Celebrity performance and endorsement value: the case of Tiger Woods. Managerial Finance, 26(7), 1–15.
Kahneman, D., & Tversky, A. (1979). Prospect theory: and analysis of decision under risk. Econometrica, 47(2), 263–291.
Karafiath, I. (1988). Using dummy variables in the event methodology. The Financial Review, 23(3), 351–357.
Louie, T. A., Kulik, R. L., & Jacobson, R. (2001). When bad things happen to the endorsers of good products. Marketing Letters, 12(1), 13–23.
Mathur, L. K., Mathur, I., & Ranga, N. (1997). The wealth effects associated with a celebrity endorser: the Michael Jordan phenomenon. Journal of Advertising Research, 37, 67–73.
Miyazaki, A. D. and Morgan, A.G. (2001). Assessing market value of event sponsoring: corporate Olympic sponsorships. Journal of Advertising Research. January–February, 9–15
Nicolau, J. L. (2011). The decision to raise firm value through a sports-business exchange: how much are Real Madrid's goals worth to its president's company's goals? European Journal of Operational Research., 215(1), 281–288.
Nicolau, J. L. (2012). The effect of winning the 2010 FIFA World Cup on the tourism market value: the Spanish case. Omega, 40(5), 503–510.
Sharpe, W. (1963). A simplified model for portfolio analysis. Management Science, 9(2), 277–293.
Sharpe, W. (1964). Capital asset prices—a theory of market equilibrium under conditions of risk. Journal of Finance, 19(3), 425–442.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Nicolau, J.L., Santa-María, M.J. Celebrity endorsers' performance on the “ground” and on the “floor”. Mark Lett 24, 143–149 (2013). https://doi.org/10.1007/s11002-012-9212-3
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11002-012-9212-3