Chang, Shao ChiShao ChiChangSHENG-SYAN CHENChou, Robin K.Robin K.ChouLin, Yueh HsiangYueh HsiangLin2023-05-172023-05-172012-0609275398https://scholars.lib.ntu.edu.tw/handle/123456789/631117We 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.enBehavior finance | Localized trading | Sports sentimentjournal article10.1016/j.jempfin.2011.12.0052-s2.0-84860359441WOS:000304579700001https://api.elsevier.com/content/abstract/scopus_id/84860359441