Market-Level Sports Sentiment: The case of the Romanian Frontier Stock Market
Market-Level Sports Sentiment: The case of the Romanian Frontier Stock Market

Summary/Abstract: In the ongoing quest to better understand investor psychology and behavior, we study the effects of popular sporting events on investor sentiment and, consequently, on market returns in the frontier stock market of Romania. We analyze sporting events that involve teams–football (soccer) and handball–and also ones that center on individuals–tennis. We find some signs that negative outcomes significantly alter post-event investor sentiment, which in turn influences market prices. However, the impact is small from an economic perspective and it is not persistent in time, being reversed in at most three trading days. Overall, we find that investor sports sentiment in Romania is weak.

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