Impact of NBA Match Results on Stock Prices of Team Sponsoring Companies

The purpose of this research is to analyze the correlation between the share prices of the sponsoring companies of the teams of the National Basketball Association of the United States of America for the 2018/2019 season and the results of the matches of the sponsored teams. The analysis is carried out on the basis of 8 companies-sponsors for the period from 16.10.2018 to 13.06.2019. The work attempts to find a correlation between the unexpected wins and losses of the sponsored team and the share price of the sponsor company. The size of the bookmaker’s coefficient on the outcome of a sporting event was used to indicate the «surprise factor» in the work. However, the hypothesis of such a relationship was rejected. The study found another interesting pattern for companies in the banking sector. There is a statistically significant positive cumulative average abnormal return of stocks of the banking sector’s sponsors as a result of events in which the sponsored team lost the match. This observation may be due to the stream of news that results from the loss of the sponsored team.