Sentiment, irrationality and market efficiency: The case of the 2010 FIFA World Cup

Guy Kaplanski and Haim Levy

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2014, vol. 49, issue C, 35-43

Abstract: Soccer games create sentiment, which affects stock prices. The World Cups before 2010 provided exploitable abnormal profit which was not exploited, presumably because it was unknown. Just before the 2010 World Cup, the exploitable effect has been discovered and widely cited by practitioners who even suggested recipe how to exploit it. Indeed, the information on the abnormal profit created in 2010 World Cup a price pattern which is different from those corresponding to the previous World Cups. Like other market anomalies, we expect that market efficiency will be restored and this new effect will vanish in the future.

Keywords: Market efficiency; Investor sentiment; Flow of information; Behavioral finance; Abnormal returns (search for similar items in EconPapers)
JEL-codes: A12 G14 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:49:y:2014:i:c:p:35-43

DOI: 10.1016/j.socec.2014.02.007

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