Does On-stage Performance of Esports Teams Impact Stock Prices: Evidence From the Astralis Group. Issue 5 (12th March 2023)

• Record Type: Journal Article
• Authors: Li, Shuxin; Takezawa, Nobuya; Zhou, Jiaxi
• Is Part Of: Applied economics letters. Volume 30:Issue 5(2023)
• Page Start: 674
• Page End: 677
• Publication Date: 2023-03-12
• Subjects: esports -- event study -- market efficiency -- sports finance -- stock price; G14 -- L83; Economics -- Periodicals; Economics, Mathematical -- Periodicals; 330
• DOI: 10.1080/13504851.2021.2009757
• Languages: English
• ISSNs: 1350-4851

Abstract

ABSTRACT: The recent establishment and popularity of professional esports leagues, coupled with the public listing of the Denmark-based esports team Astralis Group, presents an opportunity to assess whether wins and losses impact a team`s stock price in nontraditional sports. We provide empirical evidence that wins in championship matches impact stock returns for Astralis in a regression-based event study. This suggests that investors perceive championship wins as an indicator of future earnings growth of the group.