Olympic news and attitudes towards the Olympics: A compositional time-series analysis of how sentiment is affected by events
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.
|Date of creation:||May 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 44 1603 591131
Fax: +44(0)1603 4562592
Web page: http://www.uea.ac.uk/eco/
More information through EDIRC
|Order Information:|| Postal: Helen Chapman, School of Economics, University of East Anglia, Norwich Research Park, Norwich, NR4 7TJ, UK|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Georgios Kavetsos & Stefan Szymanski, 2008.
"National Wellbeing and International Sports Events,"
0804, International Association of Sports Economists;North American Association of Sports Economists.
- Kavetsos, Georgios & Szymanski, Stefan, 2010. "National well-being and international sports events," Journal of Economic Psychology, Elsevier, vol. 31(2), pages 158-171, April.
- 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, 04.
- Terence Mills, 2010. "Forecasting compositional time series," Quality & Quantity: International Journal of Methodology, Springer, vol. 44(4), pages 673-690, June.
- Michael A. Leeds & John M. Mirikitani & Danna Tang, 2009. "Rational Exuberance? An Event Analysis of the 2008 Olympics Announcement," International Journal of Sport Finance, Fitness Information Technology, vol. 4(1), pages 5-15, February.
- 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.
- 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.
- 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.
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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alasdair Brown)
If references are entirely missing, you can add them using this form.