Stock Returns and Soccer: Is there a Soccer Anomaly on Stock Markets?

Abstract

This paper examines whether there is a statistical association between international football results on major and tournaments and the following days’ stock market indexes and volumes in the participating country. The explored phenomenon relates to the topic of the effects of moods on economic choices, mostly manifested in decision-making processes as risk perception and judgmental errors. The paper applies one and two-stage event study approach, testing the relationship between historical international football matches and historical daily stock market indexes in six countries from 2010 to 2018. The empirical results suggest no statistical association between the variables.