Soccer and stock market risk: empirical evidence from the Istanbul stock exchange
Date
2013
Authors
Editor(s)
Advisor
Supervisor
Co-Advisor
Co-Supervisor
Instructor
Source Title
Psychological Reports
Print ISSN
0033-2941
Electronic ISSN
1558-691X
Publisher
Sage Publications, Inc.
Volume
112
Issue
3
Pages
763 - 770
Language
English
Type
Journal Title
Journal ISSN
Volume Title
Series
Abstract
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.