Analysis shows positive relationships with stock performance in consumer-focused NASCAR sponsors, indicating market impact varies by target audience.
We examine the short-term stock performance of firms that sponsor NASCAR race teams. Consistent with previous research, we find no unusual performance based on finishing position for the overall sample. However, we do find significant relationships when Winston Cup points are used and when the sample is decomposed along B2B vs. B2C lines. Importantly, we find that there is a positive relationship between race and stock performance for sponsors that market to consumers but no such relationship for firms that market to businesses. Additionally, we find positive returns for firms in the auto industry regardless of the sponsors’ customer group.
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Mahar et al. (2005) studied this question.
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