March Madness and Investor Mood

20 Pages Posted: 19 Nov 2012

See all articles by Marcin Krolikowski

Marcin Krolikowski

University of South Florida - College of Business Administration

Date Written: November 18, 2012


We examine the relationship between NCAA basketball end-of-season tournament (“March Madness”) results and stock returns of firms located in the vicinity of competing teams’ campuses. We find that stocks of firms located around expected winners (higher ranked teams) perform poorly if the team unexpectedly loses. For example, an upset loss leads to abnormal stock returns of -41 basis points. The decline following all basketball losses is also significant but investors punish unexpected losses more. These results, associated with upsets persist and intensify with riskier stocks, more important games and closer distance. The returns around winning universities are found to be less significant.

Keywords: Behavior Finance, Sports Sentiment

JEL Classification: G12, G14

Suggested Citation

Krolikowski, Marcin, March Madness and Investor Mood (November 18, 2012). Available at SSRN: or

Marcin Krolikowski (Contact Author)

University of South Florida - College of Business Administration ( email )

4202 E. Fowler Avenue, BSN 3403
Tampa, FL 33620-5500
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics