Title page for ETD etd-07142012-193550


Document Type Master's Dissertation
Author Kruger, Thomas Stephanus
URN etd-07142012-193550
Document Title The impact of sponsorship announcements on share prices in South Africa
Degree MBA
Department Gordon Institute of Business Science
Supervisor
Advisor Name Title
Mr M Goldman Supervisor
Keywords
  • efficient market hypothesis
  • behavioural finance
  • share price
  • sponsorship
  • efficient market hypothesis (EMH)
Date 2012-03-08
Availability unrestricted
Abstract
Much has been written, by academics, about the impact sponsorship announcements have on the share price performance of sponsoring firms.

The objective of this study was to investigate if this phenomenon was true for JSE listed companies with particular focus on three announcement categories i.e. (i) new, (ii) renew and (iii) termination. The Efficient Market Hypothesis as an aspect of Investment Finance behaviour was explored to understand why sponsorship announcements would or would not have an impact on the share price performance. For this study, descriptive research was done with a causal design as the study tested the relationship between two or more variables. The study analysed 118 sponsorship announcements made by 19 JSE listed companies over a period of eleven years and five months. The study then assessed the share price performance for the period 120 days prior to and 120 days after the announcement date.

The share price holding periods were adjusted for that of the average Financial Services (J212) Index, the Industrial (J212) Index and the Resources (J258) Index respectively to ascertain whether the returns were abnormal or not.

The results have shown that there were no evidence that the announcement of a (i) new, (ii) renewed or (iii) terminated sponsorship do have a significant impact on the performance of share prices for JSE listed companies.

2011, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.

Please cite as follows:

Kruger, TS 2011, The impact of sponsorship announcements on share prices in South Africa, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-07142012-193550/ >

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