Cite JOURNAL ARTICLE
Asset Price Effects Arising from Sports Results and Investor Mood: The Case of a Homogenous Fan Base Area
Gallagher, Robert | O'Sullivan, Niall
Applied Economics Quarterly, Vol. 57 (2011), Iss. 4 : pp. 285–301
3 Citations (CrossRef)
Department of Economics, University College Cork, Ireland.
Department of Economics and Centre for Investment Research, University College Cork, Ireland.
Twitter investment alerts for Ibex35 securitiesGómez Martínez, Raúl | Medrano García, María Luisa | Gallego Vázquez, Jose Antonio
Revista Perspectiva Empresarial, Vol. 4 (2017), Iss. 1 P.61https://doi.org/10.16967/rpe.v4n1a4 [Citations: 0]
Market reactions to football match results: The effect of venues and competition typesDwi, Apredianto | Dorkas, Rambu | Dolfriandra, Huruta
The European Journal of Applied Economics, Vol. 18 (2021), Iss. 1 P.55https://doi.org/10.5937/EJAE18-28284 [Citations: 0]
Do stock markets react to soccer games? A meta-regression analysisGeyer-Klingeberg, Jerome | Hang, Markus | Walter, Matthias | Rathgeber, Andreas
Applied Economics, Vol. 50 (2018), Iss. 19 P.2171https://doi.org/10.1080/00036846.2017.1392002 [Citations: 15]
This paper contributes to the behavioural finance literature that examines the asset pricing impact of mood altering events such as sports results, sunshine levels, daylight hours, public holidays, temperature etc. Specifically, we investigate whether variations in investor mood arising from wins and losses in major sporting events have an impact on stock market returns. We examine the case of Ireland. Ireland is an interesting case because its people are passionate about sport, the domestic population is relatively homogenous (rather than divided) in terms of support for Irish competitors in international competition and domestic investors comprise a large proportion of owners of Irish stocks—all factors which suggest that if a mood effect exists it should show up in this case. Generally, we do not find a strong link between sport results and stock market returns. Initial results do suggest that in events of particularly high importance, such as the knock-out stages of major competitions, losses are associated with negative returns. However, on controlling for indirect economic effects of sporting wins and losses such as on tourism and travel we find the mood effect is no longer significant.
JEL Classification: G10, G14