Market impact of international sporting and cultural events

We study market reaction to the announcements of the selected country hosting the Summer and Winter Olympic Games, the World Football Cup, the European Football Cup and World and Specialized Exhibitions. We generalize previous results analyzing a large number and different types of mega-events, eval...

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Bibliographic Details
Published in:Journal of economics and finance 2011-10, Vol.35 (4), p.382-416
Main Authors: Martins, António Miguel, Serra, Ana Paula
Format: Article
Language:English
Subjects:
Abnormal returns
Anticipation
Economic impact
Economics
Economics and Finance
Efficiency
Efficient markets
Event Studies
Finance
Football
G14—Information and Market Efficiency
G310—Fixed Investment Studies
Host country
Impact analysis
Infrastructure
International
Investments
JEL Classification
Macroeconomics/Monetary Economics//Financial Economics
Market Efficiency
Mega-Events
Nominations
Professional sports
Securities markets
Stock exchanges
Stock prices
Studies
Tourism
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Summary:We study market reaction to the announcements of the selected country hosting the Summer and Winter Olympic Games, the World Football Cup, the European Football Cup and World and Specialized Exhibitions. We generalize previous results analyzing a large number and different types of mega-events, evaluate the effects for winning and losing countries, investigate the determinants of the observed market reaction and control for the ex ante probability of a country being a successful bidder. Average abnormal returns measured at the announcement date and around the event are not significantly different from zero. Further, we find no evidence supporting that industries, that a priori were more likely to extract direct benefits from the event, observe positive significant effects. Yet, when we control for anticipation, the stock price reactions around the announcements are significant.
ISSN:1055-0925
1938-9744
DOI:10.1007/s12197-009-9087-1