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Soccer sentiment and investment opportunities in the Korean stock market

Author

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  • In Kang
  • Cheolbeom Park

Abstract

We have found a significant sentiment effect from national soccer match outcomes on the Korean stock market, consistent with studies on other countries. Further investigation reveals, however, that such sentiment effect is extremely short-lived and the magnitude of ensuing expected returns based on the sentiment effect is about the same as the transaction costs. Therefore, we conclude that although a significant soccer-sentiment effect from losses exists, it seems almost impossible to devise reliable arbitrage opportunities from it due to its short duration and the small magnitude of expected returns.

Suggested Citation

  • In Kang & Cheolbeom Park, 2015. "Soccer sentiment and investment opportunities in the Korean stock market," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 22(2), pages 213-226, June.
    • Handle: RePEc:taf:raaexx:v:22:y:2015:i:2:p:213-226
    DOI: 10.1080/16081625.2014.960432
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    References listed on IDEAS

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    Cited by:

    1. Jerome Geyer-Klingeberg & Markus Hang & Matthias Walter & Andreas Rathgeber, 2018. "Do stock markets react to soccer games? A meta-regression analysis," Applied Economics, Taylor & Francis Journals, vol. 50(19), pages 2171-2189, April.

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