Abstract

http://ssrn.com/abstract=677103
 
 

References (47)



 
 

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Sports Sentiment and Stock Returns


Alex Edmans


London Business School - Institute of Finance and Accounting; University of Pennsylvania - The Wharton School; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI); Centre for Economic Policy Research (CEPR)

Diego Garcia


University of North Carolina at Chapel Hill - Finance Area

Oyvind Norli


BI Norwegian Business School - Department of Financial Economics

May 1, 2006

Journal of Finance 62(4), 1967-1998, August 2007

Abstract:     
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.

Number of Pages in PDF File: 47

Keywords: Football, sports, soccer, sentiment, mood, stock returns, behavioral finance

JEL Classification: A12, G14

Accepted Paper Series


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Date posted: March 2, 2005 ; Last revised: December 20, 2013

Suggested Citation

Edmans, Alex and Garcia, Diego and Norli, Oyvind, Sports Sentiment and Stock Returns (May 1, 2006). Journal of Finance 62(4), 1967-1998, August 2007. Available at SSRN: http://ssrn.com/abstract=677103 or http://dx.doi.org/10.2139/ssrn.677103

Contact Information

Alex Edmans
London Business School - Institute of Finance and Accounting ( email )
Sussex Place
Regent's Park
London NW1 4SA
United Kingdom
University of Pennsylvania - The Wharton School ( email )
3733 Spruce Street
Philadelphia, PA 19104-6374
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
European Corporate Governance Institute (ECGI) ( email )
c/o ECARES ULB CP 114
B-1050 Brussels
Belgium
Centre for Economic Policy Research (CEPR) ( email )
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Diego Garcia
University of North Carolina at Chapel Hill - Finance Area ( email )
Chapel Hill, NC 27599-3490
1-919-962-8404 (Phone)
HOME PAGE: http://www.unc.edu/~garciadi/

Oyvind Norli (Contact Author)
BI Norwegian Business School - Department of Financial Economics ( email )
Nydalsveien 37
Oslo, N-0442
Norway
+4746410514 (Phone)
HOME PAGE: http://www.bi.edu/research/employees/?ansattid=a0510249
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