Do stock markets react to soccer games? A meta-regression analysis

Title data

Geyer-Klingeberg, Jerome ; Hang, Markus ; Walter, Matthias ; Rathgeber, Andreas W.:
Do stock markets react to soccer games? A meta-regression analysis.
In: Applied Economics. Vol. 50 (2018) Issue 19 . - pp. 2171-2189.
ISSN 0003-6846
DOI: https://doi.org/10.1080/00036846.2017.1392002

Official URL:

Abstract in another language

This study applies meta-regression analysis to aggregate a sample of 1126 empirical estimates of
the stock market reaction to soccer matches collected from 37 primary studies. Our results indicate
that winning a match is not associated with significant return effects for both national teams and
individual clubs. In the case of lost matches, we find strong evidence for publication bias, i.e.
negative returns are systematically overrepresented causing a biased picture of the true soccer
match effect. After correcting for this bias, the mean return after losses by national teams becomes
statistically insignificant and accounts for only -5 basis points. In the case of individual clubs, the
corrected impact of a loss is a significant -39 basis points effect. In a further analysis, we identify
various aspects of study design like regional differences, time period under examination and the
design of empirical analysis to be responsible for the wide variation in previous study outcomes.
Overall, our findings provide evidence against the hypothesis that stock markets are driven by
sports sentiment in the case of national teams. Due to the existence of strong asymmetry in the
returns after wins and losses of individual clubs, behavioural explanations cannot be fully ruled out.

Further data

Item Type:	Article in a journal
Refereed:	Yes
Keywords:	sports sentiment; soccer; stock returns; meta-analysis; publication bias
Institutions of the University:	Faculties > Faculty of Law, Business and Economics > Department of Business Administration Research Institutions Research Institutions > Affiliated Institutes Research Institutions > Affiliated Institutes > FIM Research Center for Information Management Faculties Faculties > Faculty of Law, Business and Economics
Result of work at the UBT:	No
DDC Subjects:	000 Computer Science, information, general works > 004 Computer science 300 Social sciences > 330 Economics
Date Deposited:	27 Feb 2018 10:24
Last Modified:	06 Nov 2023 12:30
URI:	https://eref.uni-bayreuth.de/id/eprint/42396