Sentiment, irrationality and market efficiency: The case of the 2010 FIFA World Cup

Guy Kaplanski, Haim Levy

Research output: Contribution to journalArticlepeer-review

16 Scopus citations

Abstract

Soccer games create sentiment, which affects stock prices. The World Cups before 2010 provided exploitable abnormal profit which was not exploited, presumably because it was unknown. Just before the 2010 World Cup, the exploitable effect has been discovered and widely cited by practitioners who even suggested recipe how to exploit it. Indeed, the information on the abnormal profit created in 2010 World Cup a price pattern which is different from those corresponding to the previous World Cups. Like other market anomalies, we expect that market efficiency will be restored and this new effect will vanish in the future.

Original languageEnglish
Pages (from-to)35-43
Number of pages9
JournalJournal of Behavioral and Experimental Economics
Volume49
DOIs
StatePublished - 1 Apr 2014

Bibliographical note

Publisher Copyright:
© 2014.

Keywords

  • Abnormal returns
  • Behavioral finance
  • Flow of information
  • Investor sentiment
  • Market efficiency

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