The Pitch Rather than the Pit: Investor Inattention During FIFA World Cup Matches
37 Pages Posted: 9 Mar 2012
Date Written: February 23, 2012
At the 2010 FIFA World Cup, many soccer matches were played during stock market trading hours, generating a natural experiment to analyze fluctuations in investor attention. Using data for fifteen countries, we find that market activity declined substantially during matches. Given that similar declines in activity are observed during lunchtime, these findings need not indicate shifts in attention. However, in contrast to lunchtime, the co-movement between national and global stock market returns decreased by over 20% during World Cup matches, a change in price formation that seems due to investors focusing on the soccer pitch rather than the trading pit.
Keywords: investor inattention, stock markets, trading volume, high-frequency data, soccer
JEL Classification: G12, G14, G15
Suggested Citation: Suggested Citation