Sports Event Outcomes and Stock Market Behaviour: Evidence from Bangladesh

38 Pages Posted: 30 Apr 2021

See all articles by Md. Mostafa Kamal

Md. Mostafa Kamal

Northwestern Polytechnical University; School of Management, Northwestern Polytechnical University

Lin Chen

School of Management, Northwestern Polytechnical University, China

Longfeng Zhao

Northwestern Polytechnical University - School of Management

Date Written: November 11, 2019

Abstract

Stock market movements are the results of changes in investor sentiment (INSEN) which can even be induced by non-economic events. We consider international cricket events to empirically investigate the notions. Implementing portfolio approach, we conduct the event study along with OLS regression model to quantify empirically the effects of sports event outcomes (SEOs) on investor sentiment stimulation and stock market movements. Our investigation finds abnormal returns in the event windows [-2; +2]. Additionally, constructing a market-based sentiment index, we explore whether the market abnormalities are the true effects of SEOs. The results elucidate the significant stimulus of INSEN as a mediator to push the market returns up when BCT teams won the matches, but report the mixed phenomena in case of lost games. These findings not only unveil new aspects to the regulatory authorities to control the illegal market making in small markets but also contribute the literature with extensions of learning investor reactions to the major events.

Keywords: Sports event, Investor sentiment, Google search, Stock market

JEL Classification: G11, G14, G41, N25, O53

Suggested Citation

Kamal, Md. Mostafa and Kamal, Md. Mostafa and Lin, Chen and Zhao, Longfeng, Sports Event Outcomes and Stock Market Behaviour: Evidence from Bangladesh (November 11, 2019). Available at SSRN: https://ssrn.com/abstract=3832372 or http://dx.doi.org/10.2139/ssrn.3832372

Md. Mostafa Kamal (Contact Author)

Northwestern Polytechnical University ( email )

Xian, Shaanxi 710129
China

HOME PAGE: http://https://en.nwpu.edu.cn/

School of Management, Northwestern Polytechnical University ( email )

Xi'an
China

Chen Lin

School of Management, Northwestern Polytechnical University, China ( email )

127# YouYi Load
XiAn, Shaanxi 710072
China

Longfeng Zhao

Northwestern Polytechnical University - School of Management ( email )

Xian
China

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