The Effects of Hosting Mega Sporting Events on Local Stock Markets and Sustainable Growth

Stephen P. Ferris, Sulgi Koo, Kwangwoo Park () and David T. Yi
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Stephen P. Ferris: Miller College of Business, Ball State University, Muncie, IN 47306, USA
Sulgi Koo: Industrial Bank of Korea, Seoul 04541, Republic of Korea
Kwangwoo Park: Graduate School of Finance, Korea Advanced Institute of Science and Technology (KAIST), Seoul 02455, Republic of Korea
David T. Yi: Department of Economics, Xavier University, Cincinnati, OH 45207, USA

Sustainability, 2022, vol. 15, issue 1, 1-15

Abstract: We examine the economic effects of the Summer and Winter Olympic Games and the FIFA World Cup on the economies of host countries. We found that in the short run, hosting the Olympic Games has a significant positive announcement effect on the host country’s equity market. Our results also revealed a positive effect on the stock market in non-G7 countries hosting a mega sporting event and an insignificant effect in G7 countries hosting such events, indicating that hosting a mega sporting event can provide additional momentum for developing or emerging economies. We did find, however, that while the countries hosting the Summer Olympic Games initially experienced significant positive GDP growth, the effect rapidly diminished after the event. Our results suggest that hosting a mega sporting event such as the Summer Olympic Games is most likely to result in a short-term positive economic momentum, however it hinders sustainable growth for the host countries’ economies.

Keywords: Olympics; mega sporting events; announcement effect; sustainable growth (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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