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The Impact of Sports Team Performance on the Stock Market: Evidence from China Men's National Football Team

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DOI: 10.23977/ferm.2024.070111 | Downloads: 13 | Views: 236

Author(s)

Zhijie Pan 1, Shuyang Chen 2

Affiliation(s)

1 Beijing Technology and Business University, Beijing, 100048, China
2 Xi'an Jiaotong-Liverpool University, Suzhou, Jiangsu, 215028, China

Corresponding Author

Zhijie Pan

ABSTRACT

This study focuses on China Men's National Football Team and the Chinese stock market to explore how the performance of sports teams affects the stock market of their country. Regression analysis reveals a significant positive correlation between the performance of the Chinese stock market and the achievements of China Men's National Football Team. Notably, superior outcomes by the team on an inter scale are associated with concurrent positive performance in the stock market. Further analysis through interaction term regression suggests that consumer confidence moderates the irrational behaviors of investors influenced by the team's performance. Additionally, the achievements of China Men's National Football Team exacerbate the temporary pricing errors in the stock market caused by irrational sentiments driven by consumer confidence. The findings of this study remain consistent across both the Shanghai and Shenzhen stock exchanges.

KEYWORDS

Soccer Performance, Stock Market, Temporary Asset Pricing Errors

CITE THIS PAPER

Zhijie Pan, Shuyang Chen, The Impact of Sports Team Performance on the Stock Market: Evidence from China Men's National Football Team. Financial Engineering and Risk Management (2024) Vol. 7: 73-78. DOI: http://dx.doi.org/10.23977/ferm.2024.070111.

REFERENCES

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