Tiger Woods Costs Shareholders Billions

Tiger Woods may have cost shareholders of the multiple companies that he endorses or endorsed up to $12 billion in losses, according to a study by two economics professors from the University of California, Davis.

According to the research the losses are a result of the sex scandal and indefinite leave of absence the world's No. 1 golfer is taking away from the sport.

"We estimate that shareholders of Tiger Woods' sponsors lost $5-12 billion after his car accident, relative to shareholders of firms that Mr. Woods does not endorse," professors Victor Strange and Christopher Knittel wrote while adding that millions of shareholders were affected.

Some of Woods' main sponsors have dropped or backed away from the golfer in recent weeks, including Accenture (NYSE: ACN), Proctor & Gamble (NYSE: PG) and Tag Heuer.

Nike (NYSE: NKE), Woods' most lucrative endorsement deal, has stood behind the golfer.

"Our analysis makes clear that while having a celebrity of Tiger Woods' stature as an endorser has undeniable upside, the downside risk is substantial, too," Stango added in a statement accompanying the research.

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