The Effect on Sponsoring
Companies’ Stock Prices
During Super Bowl XLVII

Jake Semler
Longwood University john.semler@live.longwood.edu Dr. Frank Bacon
Finance Professor – Longwood University baconfw@longwood.edu Fall 2013

Abstract Sponsoring a Super Bowl is a considerably large investment for companies given the unprecedentedly high cost of advertisement during this event. An event study is necessary to analyze the commitment of large investments of sponsoring companies and its effect on the companies’ stock prices. This particular event study tests these effects on sponsors of Super Bowl XLVII that took place in February of 2013. The results indicate a favorable impact leading up to event with little movement of returns days thereafter the announcement date, thus supporting the semi-strong form of market efficiency.

Research Problem
The most common way to test the efficiency of the market is with an event study. An event should be chosen that has a quantifiable impact that can be theoretically justified to ensure a proper test of the market. The event this project will analyze is Super Bowl XLVII. This event took place February 3, 2013 in New Orleans with a matchup of the AFC Champions Baltimore Ravens and NFC Champions San Francisco 49ers. This event can be theoretically justified because of the expected favorable returns sponsors of Super Bowl XLVII would experience due to the high popularity and broadcasts of the event. By conducting several experimental tests throughout this study, it will be proven if the event provided new and significant information to the market. Evaluating stock prices for the company cannot be used as the only measure of how much impact an event had for three reasons (Bacon, 9/11). First, while the event researched took place, other stock price changing events could have occurred within the firm. Second, the