The London 2012 Olympic Games announcement and its effect on the London Stock Exchange
Dimitrios Asteriou (),
Aristeidis Samitas and
Journal of Economic Studies, 2013, vol. 40, issue 2, 203-221
Purpose - The purpose of this paper is to investigate the reaction of the London Stock Exchange to the announcement of the city hosting 2012 Summer Olympic Games. The expectations of the Olympic Games are the anticipation of massive economic boosts to the host cities. These expectations are presumed to be translated into positive stock price returns. This research examines the London Stock Exchange industrial indices reactions to this announcement in July 2005. Design/methodology/approach - In order to evaluate the returns the paper employs simple conventional OLS methodology technique, event study methodology and GARCH models with appropriate dummy variables. Findings - The empirical results indicate a very limited number of significant indices impacted by such an announcement. A consistent finding to all the alternative estimations is that the oil and gas industry seem to be negatively affected by the Olympic Games announcement. Practical implications - Findings are strongly recommended to practitioners, financial investors and portfolio managers dealing with British Stocks. Originality/value - The contribution of this paper is that findings are in contrast to relevant studies, like Athens' Olympic Games, since enthusiasm is diminished.
Keywords: London Olympic Games; T GARCH models; Event study methodology; London Stock Exchange; United Kingdom; Stock exchanges (search for similar items in EconPapers)
References: Add references at CitEc
Citations Track citations by RSS feed
Downloads: (external link)
http://www.emeraldinsight.com/10.1108/014435813112 ... RePEc&WT.mc_id=RePEc (text/html)
Access to full text is restricted to subscribers
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eme:jespps:v:40:y:2013:i:2:p:203-221
Ordering information: This journal article can be ordered from
Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
Access Statistics for this article
Journal of Economic Studies is currently edited by Professor Mohsen Bahmani-Oskooee
More articles in Journal of Economic Studies from Emerald Group Publishing
Series data maintained by Virginia Chapman ().