# LUP Student Papers

## LUND UNIVERSITY LIBRARIES

### How are sponsors' share returns in Formula 1 affected by race wins?

(2022) NEKH02 20221
Department of Economics
Abstract
This paper examines abnormal returns for sponsors of race-winning Formula 1 teams through an event study. Abnormal returns are analyzed from the hybrid era 2014-2021 for 12 different sponsors whose logo is on the car's chassis through an event study. Petronas, Mercedes' main sponsor, is the sponsor that won by far the most Formula 1 races during this period. The Constant Return Model gives us the highest cumulative average abnormal return of 0.176%. The Market-Adjusted Model gives us a CAAR of 0.089% and the Capital Asset Pricing Model gives us a CAAR of 0.085%. None of the models show any major significant results that a Formula 1 win would have any large effect on a sponsor share price.
Please use this url to cite or link to this publication:
author
supervisor
organization
course
NEKH02 20221
year
type
M2 - Bachelor Degree
subject
keywords
Formula 1, Sponsors, Event Study, Abnormal Returns, Cumulative Average Abnormal Returns
language
English
id
9102007
date added to LUP
2022-11-29 15:14:01
date last changed
2022-11-29 15:14:01
```@misc{9102007,
abstract     = {{This paper examines abnormal returns for sponsors of race-winning Formula 1 teams through an event study. Abnormal returns are analyzed from the hybrid era 2014-2021 for 12 different sponsors whose logo is on the car's chassis through an event study. Petronas, Mercedes' main sponsor, is the sponsor that won by far the most Formula 1 races during this period. The Constant Return Model gives us the highest cumulative average abnormal return of 0.176%. The Market-Adjusted Model gives us a CAAR of 0.089% and the Capital Asset Pricing Model gives us a CAAR of 0.085%. None of the models show any major significant results that a Formula 1 win would have any large effect on a sponsor share price.}},
author       = {{Karafiloski, Alexandro}},
language     = {{eng}},
note         = {{Student Paper}},
title        = {{How are sponsors' share returns in Formula 1 affected by race wins?}},
year         = {{2022}},
}

```