Footnote:
In: Journal of Behavioral and Experimental Economics, Volume 49, (2014), 35-43
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 1, 2013 erstellt
Description:
Soccer games create sentiment, which affects stock prices. The World Cups before 2010 created exploitable abnormal profit in the U.S. stock market. The effect was not exploited, presumably because it was unknown before the 2010 games. However, just before the 2010 World Cup, the exploitable effect was published and widely cited by practitioners who even suggested recipe how to exploit it. Although the abnormal profit in 2010 surpassed 5%, the information on the abnormal profit created a price pattern which is different from those corresponding to the previous World Cups. Like other market anomalies, we expect that the trading activity of sophisticated investors will restore market efficiency, implying that this new effect will vanish in the future