This paper investigates the stock market reaction to sudden changes in investor mood. Motivated b... more This paper investigates the stock market reaction to sudden changes in investor mood. Motivated by psychological evidence of a strong link between soccer outcomes and mood, we use international soccer results as our primary mood variable. We find a significant market decline after soccer losses. For example, a loss in the World Cup elimination stage leads to a next-day abnormal stock return of− 49 basis points. This loss effect is stronger in small stocks and in more important games, and is robust to ...
This paper investigates the stock market reaction to sudden changes in investor mood. Motivated b... more This paper investigates the stock market reaction to sudden changes in investor mood. Motivated by psychological evidence of a strong link between soccer outcomes and mood, we use international soccer results as our primary mood variable. We find a significant market decline after soccer losses. For example, a loss in the World Cup elimination stage leads to a next-day abnormal stock return of− 49 basis points. This loss effect is stronger in small stocks and in more important games, and is robust to ...
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