IDEAS home Printed from https://ideas.repec.org/p/uea/aepppr/2012_46.html
   My bibliography  Save this paper

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

Author

Listed:
  • Terence C. Mills

    (University of Loughborough)

  • Peter Dawson

    (University of East Anglia)

  • Paul Downward

    (University of Loughborough)

Abstract

The Olympic Games are considered to be the most prestigious multi-sport event in the world. However, with growing costs associated with hosting such events against a backdrop of questionable economic benefits, and yet elation that follows from sporting success, a number of studies have started to address its intangible or softer impacts as a justification for the investment. It is well known that sentiment plays a part in the evolving economic valuation of companies through the stock market. What is less well known is 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 GB’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. The paper consequently argues that extreme caution should be exercised in policy pronouncements that are based on such sentiments.

Suggested Citation

  • Terence C. Mills & Peter Dawson & Paul Downward, 2013. "Olympic news and attitudes towards the Olympics: A compositional time-series analysis of how sentiment is affected by events," University of East Anglia Applied and Financial Economics Working Paper Series 046, School of Economics, University of East Anglia, Norwich, UK..
    • Handle: RePEc:uea:aepppr:2012_46
    as

    Download full text from publisher

    File URL: https://ueaeco.github.io/working-papers/papers/afe/UEA-AFE-046.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kavetsos, Georgios & Szymanski, Stefan, 2010. "National well-being and international sports events," Journal of Economic Psychology, Elsevier, vol. 31(2), pages 158-171, April.
    2. Bernd Süssmuth & Malte Heyne & Wolfgang Maennig, 2010. "Induced Civic Pride and Integration," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(2), pages 202-220, April.
    3. Georgios Kavetsos & Stefan Szymanski, 2008. "Olympic Games, Terrorism and their Impact on the London and Paris Stock Exchanges," Revue d'économie politique, Dalloz, vol. 118(2), pages 189-206.
    4. Giles Atkinson & Susana Mourato & Stefan Szymanski & Ece Ozdemiroglu, 2008. "Are We Willing to Pay Enough to `Back the Bid'?: Valuing the Intangible Impacts of London's Bid to Host the 2012 Summer Olympic Games," Urban Studies, Urban Studies Journal Limited, vol. 45(2), pages 419-444, February.
    5. Robert Baade & Victor Matheson, 2000. "Bidding for the Olympics: Fools Gold?," IASE Conference Papers 0007, International Association of Sports Economists.
    6. Terence C. Mills, 2009. "Forecasting obesity trends in England," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 172(1), pages 107-117, January.
    7. J. K. Ashton & B. Gerrard & R. Hudson, 2003. "Economic impact of national sporting success: evidence from the London stock exchange," Applied Economics Letters, Taylor & Francis Journals, vol. 10(12), pages 783-785.
    8. Kahane, Leo H. & Shmanske, Stephen (ed.), 2012. "The Oxford Handbook of Sports Economics Volume 1: The Economics of Sports," OUP Catalogue, Oxford University Press, number 9780195387773.
    9. James A Giesecke & John R Madden, 2007. "The Sydney Olympics, seven years on: an ex-post dynamic CGE assessment," Centre of Policy Studies/IMPACT Centre Working Papers g-168, Victoria University, Centre of Policy Studies/IMPACT Centre.
    10. Forrest, David & Sanz, Ismael & Tena, J.D., 2010. "Forecasting national team medal totals at the Summer Olympic Games," International Journal of Forecasting, Elsevier, vol. 26(3), pages 576-588, July.
    11. Terence Mills, 2010. "Forecasting compositional time series," Quality & Quantity: International Journal of Methodology, Springer, vol. 44(4), pages 673-690, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    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.
    3. Matteo Pazzona & Nicola Spagnolo, 2024. "Do not shut up and do dribble: social media and TV consumption," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(2), pages 1-25, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pasquale Lucio Scandizzo & Maria Rita Pierleoni, 2018. "Assessing The Olympic Games: The Economic Impact And Beyond," Journal of Economic Surveys, Wiley Blackwell, vol. 32(3), pages 649-682, July.
    2. Paul Dolan & Georgios Kavetsos & Christian Krekel & Dimitris Mavridis & Robert Metcalfe & Claudia Senik & Stefan Szymanski & Nicolas R. Ziebarth, 2016. "The Host with the Most? The Effects of the Olympic Games on Happiness," SOEPpapers on Multidisciplinary Panel Data Research 858, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Heather Mitchell & Mark Fergusson Stewart, 2015. "What should you pay to host a party? An economic analysis of hosting sports mega-events," Applied Economics, Taylor & Francis Journals, vol. 47(15), pages 1550-1561, March.
    4. Dolan, Paul & Kavetsos, Georgios & Krekel, Christian & Mavridis, Dimitris & Metcalfe, Robert & Senik, Claudia & Szymanski, Stefan & Ziebarth, Nicolas R., 2019. "Quantifying the intangible impact of the Olympics using subjective well-being data," Journal of Public Economics, Elsevier, vol. 177(C), pages 1-1.
    5. Brad R. Humphreys & Bruce K. Johnson & John C. Whitehead, 2020. "Validity and reliability of contingent valuation and life satisfaction measures of welfare: An application to the value of national Olympic success," Southern Economic Journal, John Wiley & Sons, vol. 87(1), pages 316-330, July.
    6. 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.
    7. Pamela Wicker & John C Whitehead & Daniel S Mason & Bruce K Johnson, 2017. "Public support for hosting the Olympic Summer Games in Germany: The CVM approach," Urban Studies, Urban Studies Journal Limited, vol. 54(15), pages 3597-3614, November.
    8. Pawlowski, Tim & Downward, Paul & Rasciute, Simona, 2014. "Does national pride from international sporting success contribute to well-being? An international investigation," Sport Management Review, Elsevier, vol. 17(2), pages 121-132.
    9. Peter A. Groothuis & Kurt W. Rotthoff, 2016. "The Economic Impact and Civic Pride Effects of Sports Teams and Mega-Events: Do The Public and the Professionals Agree?," Economic Affairs, Wiley Blackwell, vol. 36(1), pages 21-32, February.
    10. M.R. van den Berg & M. de Nooij, 2013. "The bidding paradox: why economists, consultants and politicians disagree on the economic effects of mega sports events but might agree on their attractiveness," Working Papers 13-08, Utrecht School of Economics.
    11. Brad R. Humphreys & Bruce K. Johnson & Daniel S. Mason & John C. Whitehead, 2011. "Estimating the Value of Medal Success at the 2010 Winter Olympic Games," Working Papers 11-20, Department of Economics, Appalachian State University.
    12. Wicker, Pamela & Prinz, Joachim & von Hanau, Tassilo, 2012. "Estimating the value of national sporting success," Sport Management Review, Elsevier, vol. 15(2), pages 200-210.
    13. de Boer, Willem I.J. & Koning, Ruud H. & Mierau, Jochen O., 2017. "Ex-ante and ex-post willingness-to-pay for hosting a major cycling event," Research Report 17013-EEF, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    14. Zheng, Tingguo & Chen, Rong, 2017. "Dirichlet ARMA models for compositional time series," Journal of Multivariate Analysis, Elsevier, vol. 158(C), pages 31-46.
    15. Kasimati, Evangelia & Dawson, Peter, 2009. "Assessing the impact of the 2004 Olympic Games on the Greek economy: A small macroeconometric model," Economic Modelling, Elsevier, vol. 26(1), pages 139-146, January.
    16. John K. Wilson & Richard Pomfret, 2014. "Public Policy and Professional Sports," Books, Edward Elgar Publishing, number 15381.
    17. Robert A. Baade & Victor A. Matheson, 2016. "Going for the Gold: The Economics of the Olympics," Journal of Economic Perspectives, American Economic Association, vol. 30(2), pages 201-218, Spring.
    18. J. Lucy Lee & Jeffrey D. James, 2015. "Assessing sport brand value through use of the contingent valuation method," Journal of Economic and Financial Studies (JEFS), LAR Center Press, vol. 3(6), pages 33-44, December.
    19. O. Ashton Morgan & John C. Whitehead, 2018. "Willingness to Pay for Soccer Player Development in the United States," Journal of Sports Economics, , vol. 19(2), pages 279-296, February.
    20. Pamela Wicker & Dennis Coates, 2018. "Flame Goes Out: Determinants Of Individual Support At The 2024 Hamburg Games Referendum," Contemporary Economic Policy, Western Economic Association International, vol. 36(2), pages 302-317, April.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uea:aepppr:2012_46. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Cara Liggins (email available below). General contact details of provider: https://edirc.repec.org/data/esueauk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.