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Olympic news and attitudes towards the Olympics: a compositional time-series analysis of how sentiment is affected by events

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  • Peter Dawson
  • Paul Downward
  • Terence C. Mills

Abstract

Sentiment affects the evolving economic valuation of companies through the stock market. It is unclear how 'news' affects the sentiment towards major public investments like the Olympics. In this paper we consider, from the context of the pre-event stage of the 30th Olympiad, the relationship between attitudes towards the Olympics and Olympic-related news; specifically the bad news associated with an increase in the cost of provision, and the good news associated with Team Great Britain's medal success in 2008. Using a unique data set and an event-study approach that involves compositional time-series analysis, it is found that 'good' news affects sentiments much more than 'bad', but that the distribution of such sentiment varies widely. For example, a much more pronounced effect of good news is identified for females than males, but 'bad' news has less of an impact on the young and older age groups.

Suggested Citation

  • Peter Dawson & Paul Downward & Terence C. Mills, 2014. "Olympic news and attitudes towards the Olympics: a compositional time-series analysis of how sentiment is affected by events," Journal of Applied Statistics, Taylor & Francis Journals, vol. 41(6), pages 1307-1314, June.
    • Handle: RePEc:taf:japsta:v:41:y:2014:i:6:p:1307-1314
    DOI: 10.1080/02664763.2013.868417
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    1. Wang, Gaoshan & Yu, Guangjin & Shen, Xiaohong, 2021. "The effect of online environmental news on green industry stocks: The mediating role of investor sentiment," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 573(C).
    2. Juan M.C. Larrosa, 2017. "Compositional Time Series: Past and Perspectives," Economic Analysis Working Papers (2002-2010). Atlantic Review of Economics (2011-2016), Colexio de Economistas de A Coruña, Spain and Fundación Una Galicia Moderna, vol. 1, pages 1-1, June.

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