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Rational Exuberance? An Event Analysis of the 2008 Olympics Announcement

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Author Info
Michael A. Leeds () (Temple University of Japan)
John M. Mirikitani () (Temple University of Japan)
Danna Tang () (City University of Hong Kong)

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Abstract

China spent far more on the 2008 Olympiad than any previous host country. A retrospective assessment of the benefits of the 2008 Games to the Chinese economy will not be possible for several years. We use an adaptation of event study methodology that has been employed by studies of previous Olympiads to analyze the expected benefits of the 2008 Games. We show that the announcement that Beijing would host the 2008 Games led to a brief rise in the Shanghai exchange, but the euphoria quickly dissipated. We find that there was no corresponding decline in the stock exchanges of Beijing’s closest rivals for the 2008 Games. There was a longer lasting impact on specific sectors of the Shanghai exchange, but this impact was not always positive.

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Publisher Info
Article provided by Fitness Information Technology in its journal International Journal of Sport Finance.

Volume (Year): 4 (2009)
Issue (Month): 1 (February)
Pages: 5-15
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Handle: RePEc:jsf:intjsf:v:4:y:2009:i:1:p:5-15

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Related research
Keywords: Olympics; event study; holding period return;

Find related papers by JEL classification:
L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism

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This page was last updated on 2009-11-25.


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