SOCCER AND STOCK MARKET RISK: EMPIRICAL EVIDENCE FROM THE ISTANBUL STOCK EXCHANGE

Creative Commons License

BERUMENT M. H., CEYLAN N. B.

PSYCHOLOGICAL REPORTS, vol.112, no.3, pp.763-770, 2013 (SSCI) identifier identifier identifier

  • Publication Type: Article / Article
  • Volume: 112 Issue: 3
  • Publication Date: 2013
  • Doi Number: 10.2466/17.05.pr0.112.3.763-770
  • Journal Name: PSYCHOLOGICAL REPORTS
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.763-770
  • Ankara Yıldırım Beyazıt University Affiliated: Yes

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 (Besiktas, Fenerbahce and Galatasaray). Results provide evidence that risk tolerance increases after a win, but similar patterns were not found after a loss.