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

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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)

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.

Suggested Citation

  • Marius Cristian Milos, 2024. "The Impact of Sports Event Outcomes on Stock Market Returns: An Event Analysis," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 585-590, December.
    • Handle: RePEc:ovi:oviste:v:xxiv:y:2024:i:2:p:585-590
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    More about this item

    Keywords

    stock market returns; sports events; investor sentiment; behavioral finance;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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