Football and Stock Market Performance Correlation: Evidence from Italy

Abstract

The increasing growth of soccer economy is delivering new challenges for prospective investors in terms of stock price volatility. Such challenges are rooted in behavioral finance and efficient market hypotheses. Given this, the aim of our paper is to test the link between sport performance and correspondent stock price for the Italian listed football clubs (Juventus, Lazio, AS Roma). Our results suggest that soccer wins are likely to have a positive impact over stock price. This impact is more pronounced for local stocks and thus the findings have policy implications for emotional investors.