Does national sporting performance affect stock market returns in South Africa?

Botha, Ferdinand; Beer, Carl De

doi:10.4102/jef.v6i1.277

Cited by 5 publications

(4 citation statements)

References 47 publications

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“…In that way, the national pride and emotions which arise from any game do not reflect that much in the portfolios. This conclusion is in line with Botha and de Beer (2011), in which authors also did not find any significant effects of football outcomes due to great proportion of foreign investors on the stock market in South Africa. Similarly, Tufan (2004) concludes that results obtained in that research can be caused by the Istanbul Stock Exchange investor structure.…”

Section: Discussionsupporting

confidence: 87%

Effects of Football Match Results of Croatian National Team on Stock Returns: Evidence from Zagreb Stock Exchange

Škrinjarić

Barišić

2019

Zagreb International Review of Economics and Business

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This paper observes short term effects of football match results by focusing on the Croatian national team and stock returns on the Zagreb Stock Exchange. Existing literature identifies psychological factors affecting investor’s sentiment around sporting events on different stock markets. There does not exist any study focusing on the Croatian stock market. Thus, this paper extensively observes such effects for the first time in the literature. Event study methodology, a usual approach of investigating such effects, is used on a sample of 60 stocks on the Zagreb Stock Exchange for the period from 2014 until the end of 2018. The results indicate no significant effects of winning or losing a football match, even when controlling for game being friendly, competitive tournament or qualification one; as well as after controlling for investor’s expectations based upon betting odds. This means that no profitable trading strategies could be obtained around the football match day on the Zagreb Stock Exchange in the observed period for the stocks investigated in this paper.

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Section: Discussionsupporting

confidence: 87%

Effects of Football Match Results of Croatian National Team on Stock Returns: Evidence from Zagreb Stock Exchange

Škrinjarić

Barišić

2019

Zagreb International Review of Economics and Business

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“…Berument et al, (2013) report that Turkish economic agents increase their risk tolerance after soccer team wins. Botha and De Beer (2013) note that there is no correlation between national sporting events and abnormal asset returns in South Africa.…”

Section: Introductionmentioning

confidence: 89%

“…Among the few exceptions, the notable research of Edmans et al, (2007). These studies also explain the need to capture investors' mood (Beer et al, 2013).…”

Section: Introductionmentioning

confidence: 99%

Sports Sentiment and Stock Returns: The Bombay Stock Exchange

Beer

Lin

2019

JOFRP

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Problem/Relevance: This study is motivated by psychological evidence of a strong connection between sporting event outcomes and mood. To evaluate this connection, we analyze the Indian stock market reaction to sudden changes in investors’ mood captured by India’s cricket results. By focusing on a rarely studied mood variable and a very infrequently studied stock exchange, this study adds to our understanding of the association between sporting event outcomes and mood. Research Objective/Questions: In this study, we investigate the impact of cricket wins and losses on the Bombay Stock Exchange. We hypothesize that cricket wins or losses will drive investors’ mood substantially and unambiguously so that the game outcomes will be powerful enough to impact asset prices. We also evaluate the hypothesis that losses are psychologically more powerful than wins. Methodology: We analyze the daily data from the Bombay Stock Exchange using the methodology of Edmonds et al. (2007). This methodology has the advantages of capturing the Bombay Stock Exchange stock returns timevarying volatility through a GARCH model. Major Fundings: Our findings show that cricket wins and losses do not impact the Bombay Stock Exchange. On the exchange, stock prices reflect relevant information. Our results are thus consistent with the Efficient Market Hypothesis. Implication(s): Our results imply that on the Bombay Stock Exchange, cricket wins and losses cannot be reliably used by investors and portfolio managers to achieve returns in excess of the average market returns on a risk-adjusted basis.

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“…There is presence of considerable literature pertinent to cricket as regional and international event of sports. Botha and De Beer (2013) analyzed the impact of South African three national sports on market returns. The sporting performance of cricket, soccer and rugby as sports have evidence of influencing market returns through descriptive analysis.…”

Section: Literature Reviewmentioning

confidence: 99%

Investment review in sports leagues: financial evidence from Pakistan Super League

Aftab

Naveed

2020

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PurposeThe study invites seminal investigation on potential of investment returns in professional sports leagues. In line with scope of research, the analysis of this study brings into focus the Pakistan Cricket Board (PCB) and franchises pertinent to Pakistan Super League (PSL) for investment appraisal and returns analysis.Design/methodology/approachThe methodical aspect of research deals with financial ratios and sensitivity analysis capturing the potential of returns on investment for target sample of study.FindingsThe investment appraisal substantiates the significance of potential returns on sports projects. The returns of investment reports sluggish seasonal returns during initial phase of PSL; however, return on investment (ROI) optimized with the maturity and further capitalization of Pakistan Supper League in more concentrated competitive environment. Sensitivity analysis proves variability of returns with changes in growth prospect of franchises.Research limitations/implicationsThe study provides important working knowledge for existing and potential new investors and sports boards to consider the financial investment feasibility through customized investment models and relative orientations of promotion of sports, new talent hunting and re-fabricating the structure of sports in line with new age.Originality/valueThe efficacy of research is ensured through empirical verification of data obtained from reliable sources, and the novelty of research comes from investment appraisal and analysis of growing sports league familiarized as Pakistan Super League. The research approach and target sample are quite unique in context of sports leagues literature.

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Does national sporting performance affect stock market returns in South Africa?

Cited by 5 publications

References 47 publications

Effects of Football Match Results of Croatian National Team on Stock Returns: Evidence from Zagreb Stock Exchange

Effects of Football Match Results of Croatian National Team on Stock Returns: Evidence from Zagreb Stock Exchange

Sports Sentiment and Stock Returns: The Bombay Stock Exchange

Investment review in sports leagues: financial evidence from Pakistan Super League

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