Sports sentiment and stock returns

• 成果类型: Article
• 署名作者: Edmans, Alex; Garcia, Diego; Norli, Oyvind
• 署名单位: University of Pennsylvania; University of North Carolina; University of North Carolina Chapel Hill; BI Norwegian Business School
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2007.01262.x
• 发表日期: 2007
• 页码: 1967-1998
• 关键词: myocardial-infarction; Investor sentiment; WORLD CUP; football; MARKET; identification; ALLEGIANCE; OWNERSHIP; prices; team

摘要

This paper investigates the stock market reaction to sudden changes in investor mood. Motivated by psychological evidence of a strong link between soccer outcomes and mood, we use international soccer results as our primary mood variable. We find a significant market decline after soccer losses. For example, a loss in the World Cup elimination stage leads to a next-day abnormal stock return of -49 basis points. This loss effect is stronger in small stocks and in more important games, and is robust to methodological changes. We also document a loss effect after international cricket, rugby, and basketball games.