Tiger Woods Has Cost Investors Billions

Like bankers in the past decade, Tiger Woods’s risk management skills have been lacking. And as the recession has touched more than just Wall Street, Tiger’s infidelity is impacting more than just him and his family:

Shareholders of Nike, Gatorade and other Tiger Woods sponsors lost a collective $5 to $12 billion in the wake of the scandal involving his extramarital affairs, according to a new study by researchers at the University of California, Davis.

The losses are separate from—and potentially much larger than—damage to Woods, own earnings.

Total shareholder losses may exceed several decadesâ⒬┢ worth of Tiger Woods personal endorsement income, said Victor Stango, a professor of economics at the UC Davis Graduate School of Management and co-author of the study.

Read the whole piece from UC Davis here.