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Stock market reactions to FIFA World Cup announcements: An event study

Amélie Charles () and Olivier Darné ()
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Amélie Charles: Audencia Business School
Olivier Darné: LEMNA, University of Nantes

Authors registered in the RePEc Author Service: Olivier Darné

Economics Bulletin, 2016, vol. 36, issue 4, 2028-2036

Abstract: This article examines stock market reactions in countries competing to hold the FIFA World Cups around the time of the winning bid announcements. We analyze the announcement effects of winning and losing, beginning with 1994 FIFA World Cup announced in 1988, up until the announcement of the 2022 FIFA World Cup in 2010, with 18 countries, including of a mixture of developing and developed countries.. We observe no significant positive stock price reaction at the announcement dates for the winners, except for Qatar for the 2022 FIFA World Cup. However, we find significant cumulative abnormal returns for some countries. For the losing bidders, the results show significant negative abnormal return at the announcement dates for Morocco and Egypt for the 2010 FIFA World Cup, and again for Morocco for the 1998 FIFA World Cup. We also find that, on average, the losing bidders display significant negative CARs.

Keywords: Event Study; Mega-Events; FIFA World Cup; stock market reaction. (search for similar items in EconPapers)
JEL-codes: G0 L8 (search for similar items in EconPapers)
Date: 2016-11-09
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