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The Pitch Rather Than the Pit: Investor Inattention, Trading Activity, and FIFA World Cup Matches

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  • MICHAEL EHRMANN
  • DAVID‐JAN JANSEN

Abstract

This paper analyzes stock market trading in 15 countries during the 2010 and 2014 soccer FIFA World Cups. We find evidence for substantial investor inattention during these major sporting events. The lack of attention for the trading pit is particularly large when the national soccer team is competing, with traded volumes declining by as much as 48%. During national team matches, prices on local stock markets can temporarily decouple from global financial market developments. These findings suggest that major sporting events can act as a laboratory in which to investigate investor inattention.

Suggested Citation

  • Michael Ehrmann & David‐Jan Jansen, 2017. "The Pitch Rather Than the Pit: Investor Inattention, Trading Activity, and FIFA World Cup Matches," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 49(4), pages 807-821, June.
    • Handle: RePEc:wly:jmoncb:v:49:y:2017:i:4:p:807-821
    DOI: 10.1111/jmcb.12398
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    Cited by:

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    3. Finer, David Andrew, 2022. "No Shock Waves through Wall Street? Market Responses to the Risk of Nuclear War," Working Papers 318, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
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