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Stock market reactions to FIFA World Cup announcements: An event study

Author

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  • Amélie Charles

    (Audencia Business School)

  • Olivier Darné

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes)

Abstract

This article examines stock market reactions in countries competing to hold the FIFA World Cups around the time of the winning bid announcements. We analyze the announcement effects of winning and losing, beginning with 1994 FIFA World Cup announced in 1988, up until the announcement of the 2022 FIFA World Cup in 2010, with 18 countries, including of a mixture of developing and developed countries.. We observe no significant positive stock price reaction at the announcement dates for the winners, except for Qatar for the 2022 FIFA World Cup. However, we find significant cumulative abnormal returns for some countries. For the losing bidders, the results show significant negative abnormal return at the announcement dates for Morocco and Egypt for the 2010 FIFA World Cup, and again for Morocco for the 1998 FIFA World Cup. We also find that, on average, the losing bidders display significant negative CARs.

Suggested Citation

  • Amélie Charles & Olivier Darné, 2016. "Stock market reactions to FIFA World Cup announcements: An event study," Post-Print hal-01395333, HAL.
    • Handle: RePEc:hal:journl:hal-01395333
    Note: View the original document on HAL open archive server: https://audencia.hal.science/hal-01395333
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    References listed on IDEAS

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    Cited by:

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    2. Steffen Hundt & Andreas Horsch, 2019. "Sponsorship of the FIFA world cup, shareholder wealth, and the impact of corruption," Applied Economics, Taylor & Francis Journals, vol. 51(23), pages 2468-2491, May.

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    More about this item

    Keywords

    Market reactions; FIFA World cup; Event study;
    All these keywords.

    JEL classification:

    • G0 - Financial Economics - - General
    • L8 - Industrial Organization - - Industry Studies: Services

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