Local sports sentiment and returns of locally headquartered stocks: A firm-level analysis
Journal
Journal of Empirical Finance
Journal Volume
19
Journal Issue
3
Pages
309-318
Date Issued
2012-06
Author(s)
Abstract
We undertake a firm-level analysis of the relation between National Football League (NFL) game outcomes and the return patterns of Nasdaq firms headquartered geographically near the NFL teams. We find that a team's loss leads to lower next-day returns for locally headquartered stocks and that this impact increases for a surprising loss or a critical game loss. The negative effects of game losses are stronger for stocks that are more vulnerable to shifts in sports sentiment. Our results suggest that the game outcomes of local sports teams influence investor sentiment, which significantly affects the returns of localized trading stocks. © 2012 Elsevier B.V.
Subjects
Behavior finance | Localized trading | Sports sentiment
Publisher
ELSEVIER SCIENCE BV
Type
journal article