Reexamining sports-sentiment hypothesis: Microeconomic evidences from Borsa Istanbul

Fung, Ka Wai Terence; Demir, Ender; Lau, Chi Keung Marco; Chan, Kwok Ho

doi:10.1016/j.intfin.2014.11.015

Cited by 15 publications

(13 citation statements)

References 40 publications

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“…The daily returns are computed as the difference in the natural logarithm of the BIST100 index for each of the consecutive trading days. In line with Kaplanski and Levy (2010) and Fung et al (2015) and I run the following regression:…”

Section: Methodsmentioning

confidence: 99%

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Aviation Accidents and Stock Market Reaction: Evidence from Borsa Istanbul

Demir¹

2015

EJEF

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Behavioral finance literature shows that a variety of mood variables affect the stock prices. Aviation accidents are uncommon that generally cause a high number of casualties. Therefore, they have a strong social repercussion in the country. This negative sentiment driven by bad mood might affect the investment decisions of investors. This study examines the effect of aviation accidents on Borsa Istanbul Index and Borsa Istanbul Transportation Index. Turkish aviation companies had only 5 serious accidents from 1990 to 2013. On the contrary to the previous findings, it is found that the aviation disasters do not have any effect on the stock market.

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Section: Methodsmentioning

confidence: 99%

“…There is no win effect for any sports. Fung et al (2015) examine the impact of international soccer matches on the Turkish stock market using firm level and sorted portfolio. Using the Edmans et al (2007) estimation method, a significant negative loss effect is found.…”

Section: Introductionmentioning

confidence: 99%

Aviation Accidents and Stock Market Reaction: Evidence from Borsa Istanbul

Demir¹

2015

EJEF

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“…A further aspect discussed in the literature concerns the size effect. If investor sentiment exists, a stronger return reaction of stocks with small market capitalization would be expected (among others, Fung et al 2015). This effect may be reasoned by a home bias (French and Poterba 1991).…”

Section: Data Characteristicsmentioning

confidence: 99%

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

2017

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This study applies meta-regression analysis to aggregate a sample of 1,126 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.

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“…Based on these inconsistent results, this paper aims to add empirical evidence to this issue and confirm previous findings. Additionally, we use football clubs from different countries considering that Wilson, Plumley, & Ramchandani (2013), Demir and Danis (2011), Demirhan (2013), Fung, Demir, Lau, & Chan (2015 only focus on single countries (England and Turkey, consecutively) and suggest future studies to use football clubs from other European country leagues. Also, this paper analyzes match results' effects on football clubs not only with abnormal returns but also with trading volume.…”

Section: Introductionmentioning

confidence: 99%

Market reactions to football match results: The effect of venues and competition types

Dwi¹,

Dorkas²,

Huruta³

2021

EurJ Appl Econ

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This study seeks to investigate the stock market reaction to football match results in different venues and competition types, especially for three major football clubs: Manchester United, Juventus FC, and Borussia Dortmund. We use a parametric paired sample t-test. The findings show that investors take not only match results but also venues and competition types into consideration when making investment decisions. This study indicates the stock markets of football clubs are semi-strong efficient markets. Different market reaction to match results for each football club studied implies the importance of understanding the specific characteristics of those clubs in making investment decisions. The findings suggest the football club investors need to consider their clubs' competitive performance in different venues and competition types when making portfolio investment decisions. This study complemented the previous assumption on the importance of venues, and competition types match results in making investment decisions.

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Reexamining sports-sentiment hypothesis: Microeconomic evidences from Borsa Istanbul

Cited by 15 publications

References 40 publications

Aviation Accidents and Stock Market Reaction: Evidence from Borsa Istanbul

Aviation Accidents and Stock Market Reaction: Evidence from Borsa Istanbul

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

Market reactions to football match results: The effect of venues and competition types

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