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Game day effect on stock market: Evidence from four major sports leagues in US

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  • Fan, Qingliang
  • Wang, Ting

Abstract

This paper studies the sports games’ impact on stock market in perspective of loss effect, rivalry games and media attention. The empirical results show that the loss of games are associated with decreasing of the subsequent daily franchises’ local stock market returns. Winning rivalry games is found to be associated with higher stock returns. The game day effect is mitigated for games with higher media exposure. Specifically, we find that the media attention will reduce the local stock returns in the case of winning games for NBA and NHL. At last, we examine the robustness of our finding by showing that the loss effect and win effect are the result of investor sentiment instead of the efficient market mechanism.

Suggested Citation

  • Fan, Qingliang & Wang, Ting, 2018. "Game day effect on stock market: Evidence from four major sports leagues in US," Journal of Behavioral and Experimental Finance, Elsevier, vol. 20(C), pages 9-18.
    • Handle: RePEc:eee:beexfi:v:20:y:2018:i:c:p:9-18
    DOI: 10.1016/j.jbef.2018.03.005
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    Cited by:

    1. Jyh-How Huang & Yu-Chia Hsu, 2021. "A Multidisciplinary Perspective on Publicly Available Sports Data in the Era of Big Data: A Scoping Review of the Literature on Major League Baseball," SAGE Open, , vol. 11(4), pages 21582440211, November.
    2. Shane D. Sanders, 2024. "Wages, Talent, and Demand for NCAA Sport After the Alston v. NCAA Antitrust Case," Journal of Sports Economics, , vol. 25(2), pages 169-185, February.

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    More about this item

    Keywords

    Investor sentiment; Stock market; Sports rivalry; Media attention;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • Z23 - Other Special Topics - - Sports Economics - - - Finance

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