STOCK MARKET REACTION TO NATIONAL SPORTING SUCCESS: CASE OF ISTANBUL STOCK EXCHANGE

Dilek Demirhan
3.188 1.091

Abstract


The aim of this study is to investigate whether the sporting success of Turkish national soccer team affects ISE (Istanbul Stock Exchange) -100 index returns. The impact of soccer games’ outcomes on stock returns has been studied by many researchers, some of them found a relationship between the scores of the matches and stock returns, whereas others did not. In this study the effects of all the games of Turkish national soccer team between 04.01.1988-25.05.2011 on ISE-100 index returns are investigated by using GARCH analysis. According to the findings, the wins of the national team are not affecting the ISE-100 index return, whereas the failures (losses and draws) have a negative effect.


Keywords


Behavioral finance, Sporting success, stock market returns, GARCH analysis

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References


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