Part of the Behavioural Research in Finance research group seminar series.
Date/Time: Wednesday 13 December, 14:00 - 15:30
Venue: Room 4.23, Newcastle University Business School
Speaker: Dr Andrew Urquhart, Southampton University Business School
This paper studies the firm-level sentiment between Premier League match outcomes and the return patterns of FTSE 350 firms headquartered geographically near the Premier League teams. Contrary to the majority of the sports sentiment literature, we find that a team's win leads a significant higher next-day return for locally headquartered stocks and no significant loss effect. This effect is stronger for Saturday matches and is irrelevant whether the match is a competitive or uncompetitive match. However the significant win effect is only present for London firms/matches indicating a different investor reaction to London matches and non-London matches. Therefore our results indicate that investors may view local sporting events in a more positive light than that of national sporting events which routinely show a significant loss effect.