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The soccer stock market anomaly

Heuvel, R.M. van den (2016). The soccer stock market anomaly. Nijmegen: Radboud Universiteit.

The outcomes of important national soccer team matches have been linked to next trading day stock returns, most likely through the impact of the result on the moods and emotions of investors. Previous studies, studying different countries and time periods, reach different conclusions on whether or not this effect holds or not. This thesis investigates whether the proposed soccer result and stock market linkage might in fact be country and culture specific, and investigates what differences in cultural dimensions might explain the presence or absence of such a linkage. The author finds that rate of indulgence and individualism decrease the effect of a national soccer team loss on stock prices. The cultural dimensions of masculinity, long-term orientation, and individualism, decrease the effect of a national soccer team win on stock prices. Furthermore, the effect of a win on stock prices is bigger for so-called “soccer countries” and smaller for relatively wealthier countries. Hence, the anomaly is not uniform across countries and cultures but rather is influenced by the culture and relative wealth of a country, partially explaining the varying effects found in the existing literature.

Uitgever(s): Radboud Universiteit,

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Roland van den Heuvel

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economie
scripties
voetbal