-
Views
-
Cite
Cite
Michael Ehrmann, David-Jan Jansen, It Hurts (Stock Prices) When Your Team is about to Lose a Soccer Match , Review of Finance, Volume 20, Issue 3, May 2016, Pages 1215–1233, https://doi.org/10.1093/rof/rfv031
- Share Icon Share
Abstract
The end result of major sporting events has been shown to affect next day stock returns through shifts in investor mood. By studying intraday data during the soccer matches that led to the elimination of France and Italy from the 2010 FIFA World Cup, we test whether mood-related pricing effects already materialize as events unfold. We use data for a cross-listed firm, which allows for a straightforward identification of underpricing. During the matches, the firm’s stock is underpriced by up to 7 basis points in the country that eventually loses. The probability of underpricing increases as elimination becomes more likely.