EconPapers    
Economics at your fingertips  
 

Is There a Differential Market Size Effect in U.S. Free Agent Signings? Evidence From Localized Sentiment Trading

Aigbe Akhigbe, Melinda Newman and Ann Marie Whyte

Journal of Sports Economics, 2021, vol. 22, issue 6, 678-721

Abstract: We consider three professional sports and examine if there is a disparate return response to free agent signings with small versus big market franchises. After controlling for player ability, contract characteristics, and negotiation conditions, we find evidence of a more pronounced negative small market effect in response to both basketball and baseball signings, and a more pronounced negative big market effect in response to football signings. Our results suggest that differential market size sensitivities are complex, reflecting the influence of factors such as player ability and compensation in ways that are highly nuanced and unique to each league.

Keywords: sentiment trading; localized trading; free agency; small market effect (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/15270025211007193 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:jospec:v:22:y:2021:i:6:p:678-721

DOI: 10.1177/15270025211007193

Access Statistics for this article

More articles in Journal of Sports Economics
Bibliographic data for series maintained by SAGE Publications ().

 
Page updated 2022-01-04
Handle: RePEc:sae:jospec:v:22:y:2021:i:6:p:678-721