The Relationship between National Football Teams’ Performance and Stock Markets

Abstract

Investors may sometimes go out of rational behavior in markets depending on their moods. It is stated in the literature that one of the factors affecting the investors' mood is the results of football matches. In this research, the effect of match results of national football teams on stock markets is examined. In this context, England, Italy, France, Spain and Turkey, where football is very popular, are included in the sample. Event study method, which is frequently used in the literature, is used. Findings show that the results of the matches in different countries cause different reactions in the markets; no common result for all countries is obtained.