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Investor sentiment, soccer games and stock returns

Author

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  • Dimic, Nebojsa
  • Neudl, Manfred
  • Orlov, Vitaly
  • Äijö, Janne

Abstract

This study investigates the nature of stock price reactions of publicly-traded soccer clubs following league matches. Consolidating data on soccer games and betting odds, results suggest that the magnitude and the character of investor reactions vary considerably after the release of negative and positive information. Price response to positive information increases in surprise to resolution of uncertainty, while bad information connotes negative and vast reactions regardless of the surprise component. Moreover, negative news is more slowly absorbed by the stock market than positive news. Finally, investor reactions are larger following the games with considerable emotional component.

Suggested Citation

  • Dimic, Nebojsa & Neudl, Manfred & Orlov, Vitaly & Äijö, Janne, 2018. "Investor sentiment, soccer games and stock returns," Research in International Business and Finance, Elsevier, vol. 43(C), pages 90-98.
    • Handle: RePEc:eee:riibaf:v:43:y:2018:i:c:p:90-98
    DOI: 10.1016/j.ribaf.2017.07.134
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    2. Chi-Wei Su & Xu-Yu Cai & Ran Tao, 2020. "Can Stock Investor Sentiment Be Contagious in China?," Sustainability, MDPI, vol. 12(4), pages 1-16, February.

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    More about this item

    Keywords

    Investor mood; Soccer; Sports betting; Market efficiency;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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