The Impact Of Sports Celebrity Endorsement On The Market Value Of Listed Companies

With the rapid development of sports,sports will have a significant impact on the economic,political and cultural fields.In this process,sports celebrities will certainly receive more attention.If sports celebrities help enterprises build brands and enhance added value through their extensive influence,they can enhance the market value of listed companies and promote their better development.If the characteristics of sports celebrities do not match with the types of enterprises,and the fit between them is low,the positive impact of endorsement may not be significant,and even have a negative impact due to the high cost of endorsement.Therefore,it is worth thinking about whether it is worthwhile for listed companies to hire sports celebrity endorsement.In order to explore the relationship between the endorsement of sports celebrities and the market value of listed companies,this paper uses the event study method to select the listed companies endorsed by sports celebrities before and after the Tokyo Olympic Games and Beijing Winter Olympics as the research object,and conducts an in-depth study and empirical test on the issue of endorsement and market value.Based on persuasion theory,meaning transfer model and fine processing possibility model,and with empirical research as the main method,this paper collects all the listed companies endorsed by sports celebrities who have made substantial achievements in Tokyo 2020 and Beijing 2022 Olympic Games(winning gold medals and breaking world and continent records)before and after the Olympic Games.And sorted out the event window period and estimated period of listed companies,each securities market daily returns.Referring to the relevant studies of domestic and foreign scholars,the regression model is established by Capital Asset Pricing Model(CAPM)to estimate the expected rate of return and get the abnormal rate of return.On the one hand,this paper aims to explore the relationship between sports celebrity endorsement and the market value of listed companies(i.e.,abnormal return rate),and classify and analyze the different influences of sports celebrity endorsement and endorsement enterprises and the influence of sports celebrity on abnormal return rate.On the other hand,the Baidu search index of sports celebrities is introduced and the regression model is rebuilt with the abnormal returns of the endorsed listed companies to clarify the relationship between the intensity of the Baidu index and the abnormal returns of the endorsed listed companies.The empirical study of this paper finds that,first,sports celebrities signing endorsement deals does not have a significant positive impact on the endorsed listed companies;Secondly,sports celebrities can have a significant positive impact on the market value of listed companies when they make achievements after signing endorsement contracts;Thirdly,during the period when sports celebrities sign endorsement contracts,the online attention of sports celebrities has no significant influence on the change of market value of the listed companies endorsed;Fourthly,during the achievement day,the online attention of sports celebrities has a positive impact on the change of market value of the listed companies endorsed.Combined with the empirical research results.This paper proposes the following suggestions from the perspective of sports celebrities and listed companies: First,sports celebrities should make more endorsement and publicity behaviors that are substantive and can attract the eyes of the public and investors and have a great influence when signing endorsements;Second,in the process of promoting corporate development through celebrity endorsement marketing strategies with high prices and high returns,listed companies need to consider choosing athletes who are more appropriate to the company’s culture and brand to endorse,closely associate sports celebrities with the company’s brand,and carry out sustainable endorsement management behavior;Third,when the listed company hires sports celebrity spokespersons,it should try its best to make the spokespersons become the spokespersons of the overall brand of the company,rather than only limited to a single category of product endorsement;Fourth,listed companies should try to adopt a single spokesperson to carry out the endorsement strategy,so as to ensure the effectiveness of the endorsement;Fifth,the listed company also needs to strengthen its endorsement and publicity on the Internet and the media,so as to create more positive topics for sports celebrities before and after the competition,increase the attention of sports celebrities,further increase the social influence,and promote the maximization of the economic benefits of endorsement.