Soccer and stock market risk: Empirical evidence from the Istanbul stock exchange
Please cite this item using this persistent URLhttp://hdl.handle.net/11693/20805
There is an emerging but important literature on the effects of sport events such as soccer on stock market returns. After a soccer team's win, agents discount future events more favorably and increase risk tolerance. Similarly, after a loss, risk tolerance decreases. This paper directly assesses risk tolerance after a sports event by using daily data from the three major soccer teams in Turkey (Beşiktaş, Fenerbahçe and Galatasaray). Results provide evidence that risk tolerance increases after a win, but similar patterns were not found after a loss. © Psychological Reports 2013.
- Research Paper