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Scoring on the stock exchange? The effect of football matches on stock market returns: an event study

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  • Bert Scholtens
  • Wijtze Peenstra

Abstract

We analyse the effect of results of football matches on the stock market performance of football teams. We analyse 1274 matches of eight teams in the national and European competition during 2000-2004. We find that the stock market response is significant and positive for victories and negative for defeats. The response is significantly stronger in the case of defeat. The response is stronger for matches in the European competition than for those in the national competition. Unexpected results have a stronger impact for European matches than expected ones but this is not the case in the national competition.

Suggested Citation

  • Bert Scholtens & Wijtze Peenstra, 2009. "Scoring on the stock exchange? The effect of football matches on stock market returns: an event study," Applied Economics, Taylor & Francis Journals, vol. 41(25), pages 3231-3237.
  • Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3231-3237 DOI: 10.1080/00036840701721406
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    2. Pepall, Lynne M & Richards, Daniel J, 2001. "Reach for the Stars: A Strategic Bidding Game," Economica, London School of Economics and Political Science, vol. 68(272), pages 489-504, November.
    3. Peter Groothuis & Richard Hill & Timothy Perri, 2004. "Early Entry in the NBA Draft: The Influence of Unraveling, Human Capital and Option Value," Working Papers 04-05, Department of Economics, Appalachian State University, revised 2005.
    4. Rosen, Sherwin, 1981. "The Economics of Superstars," American Economic Review, American Economic Association, vol. 71(5), pages 845-858, December.
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    Cited by:

    1. Roberto Gásquez & Vicente Royuela, 2014. "Is Football an Indicator of Development at the International Level?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 117(3), pages 827-848, July.
    2. Ender Demir & Hakan Danis, 2011. "The Effect of Performance of Soccer Clubs on Their Stock Prices: Evidence from Turkey," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 47(0), pages 58-70, September.
    3. repec:sae:jospec:v:19:y:2018:i:2:p:230-278 is not listed on IDEAS
    4. Fung, Ka Wai Terence & Demir, Ender & Lau, Marco Chi Keung & Chan, Kwok Ho, 2013. "An Examination of Sports Event Sentiment: Microeconomic Evidence from Borsa Istanbul," MPRA Paper 52874, University Library of Munich, Germany.
    5. Adrian R. Bell & Chris Brooks & David Matthews & Charles Sutcliffe, 2012. "Over the moon or sick as a parrot? The effects of football results on a club's share price," Applied Economics, Taylor & Francis Journals, vol. 44(26), pages 3435-3452, September.
    6. Dennis Coates & Brad R. Humphreys, 2008. "The Effect of On-Field Success on Stock Prices: Evidence from Nippon Professional Baseball," Working Papers 0805, International Association of Sports Economists;North American Association of Sports Economists.
    7. Pedro Godinho & Pedro Cerqueira, 2018. "The Impact of Expectations, Match Importance, and Results in the Stock Prices of European Football Teams," Journal of Sports Economics, , vol. 19(2), pages 230-278, February.
    8. Fung, Ka Wai Terence & Demir, Ender & Lau, Chi Keung Marco & Chan, Kwok Ho, 2015. "Reexamining sports-sentiment hypothesis: Microeconomic evidences from Borsa Istanbul," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 34(C), pages 337-355.
    9. Amélie Charles & Olivier Darné, 2016. "Stock market reactions to FIFA World Cup announcements: An event study," Economics Bulletin, AccessEcon, vol. 36(4), pages 2028-2036.
    10. Doerrenberg, Philipp & Siegloch, Sebastian, 2014. "Is soccer good for you? The motivational impact of big sporting events on the unemployed," Economics Letters, Elsevier, vol. 123(1), pages 66-69.

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