Investor sentiment, soccer games and stock returns

Investor sentiment, soccer games and stock returns

This study investigates the nature of stock price reactions of publicly-traded soccer clubs following league matches. Consolidating data on soccer games and betting odds, results suggest that the magnitude and the character of investor reactions vary considerably after the release of negative and po...

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Bibliographic Details
Published in:Research in international business and finance Vol. 43; pp. 90 - 98
Main Authors: Dimic, Nebojsa, Neudl, Manfred, Orlov, Vitaly, Äijö, Janne
Format: Journal Article
Language:English
Published: Elsevier B.V 01-01-2018
Subjects:
Investor mood
Market efficiency
Soccer
Sports betting
Investor mood
G12
Market efficiency
G14
Soccer
Sports betting
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Description
Summary:This study investigates the nature of stock price reactions of publicly-traded soccer clubs following league matches. Consolidating data on soccer games and betting odds, results suggest that the magnitude and the character of investor reactions vary considerably after the release of negative and positive information. Price response to positive information increases in surprise to resolution of uncertainty, while bad information connotes negative and vast reactions regardless of the surprise component. Moreover, negative news is more slowly absorbed by the stock market than positive news. Finally, investor reactions are larger following the games with considerable emotional component.
ISSN:0275-5319
1878-3384
DOI:10.1016/j.ribaf.2017.07.134