Football and the risk-return relationship for a stock market: Borsa Istanbul
Author
Berument, Hakan
Ceylan, N. B.
Onar, B.
Date
2013Source Title
Emerging Markets Finance and Trade
Print ISSN
1540-496X
Electronic ISSN
1558-0938
Publisher
Routledge
Volume
49
Issue
2
Pages
19 - 30
Language
English
Type
ArticleItem Usage Stats
152
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views
143
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Abstract
We hypothesize that results of football (soccer) teams affect the risk perception of people. People choose riskier investments after a win and less risky investments after a loss; this leads to higher (lower) returns in the stock market. These hypotheses are tested for the international matches of Turkey's three most popular teams (Beşiktaş, Fenerbahçe, and Galatasaray). The empirical findings suggests that the teams' wins led to higher asset returns and lower risk aversion on the following business day of the Borsa Istanbul and lower returns and higher risk aversion after a loss or a tie. © 2013 M.E. Sharpe, Inc. All rights reserved.