Soccer and Stock Market Risk: Empirical Evidence from the Istanbul Stock Exchange. Issue 3 (June 2013)

• Record Type: Journal Article
• Authors: Berument, M. Hakan; Ceylan, Nildag Basak
• Is Part Of: Psychological reports. Volume 112:Issue 3(2013)
• Page Start: 763
• Page End: 770
• Publication Date: 2013-06
• Subjects: Psychology -- Periodicals; Psychiatry; Psychology; Psychologie -- Périodiques; Psychology; 150.5
• DOI: 10.2466/17.05.PR0.112.3.763-770
• Languages: English
• ISSNs: 0033-2941

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.