The Impact of Sports Event Outcomes on Stock Market Returns: An Event Analysis

Marius Cristian Milos ()
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Marius Cristian Milos: “Babeș-Bolyai” University of Cluj-Napoca, Faculty of Economics and Business Administration, Department of Business Administration-Reșița, Romania

Ovidius University Annals, Economic Sciences Series, 2024, vol. XXIV, issue 2, 585-590

Abstract: This paper investigates the impact of match outcomes on stock market returns, with a specific focus on two major European football clubs, Borussia Dortmund and Juventus. By applying econometric methods, the study examines the correlation between the clubs' game-day results and fluctuations in their respective stock prices. The findings reveal that Borussia Dortmund's victories result in immediate and statistically significant positive returns, extending into the following trading day. For Juventus, victories also lead to immediate positive returns, but these effects do not carry over to the subsequent day in a statistically significant way. Losses for both clubs are associated with declines in stock performance the following trading day. This research underscores the nuanced ways sports outcomes influence investor sentiment, highlighting variability based on team performance and the timing of market reactions.

Keywords: stock market returns; sports events; investor sentiment; behavioral finance (search for similar items in EconPapers)
JEL-codes: G14 G41 L83 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xxiv:y:2024:i:2:p:585-590

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