Soccer sentiment and investment opportunities in the Korean stock market

In Kang; Cheolbeom Park

doi:10.1080/16081625.2014.960432

Soccer sentiment and investment opportunities in the Korean stock market

In Kang
, Cheolbeom Park^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

4 Citations (Scopus)

Abstract

We have found a significant sentiment effect from national soccer match outcomes on the Korean stock market, consistent with studies on other countries. Further investigation reveals, however, that such sentiment effect is extremely short-lived and the magnitude of ensuing expected returns based on the sentiment effect is about the same as the transaction costs. Therefore, we conclude that although a significant soccer-sentiment effect from losses exists, it seems almost impossible to devise reliable arbitrage opportunities from it due to its short duration and the small magnitude of expected returns.

Original language	English
Pages (from-to)	213-226
Number of pages	14
Journal	Asia-Pacific Journal of Accounting and Economics
Volume	22
Issue number	2
DOIs	https://doi.org/10.1080/16081625.2014.960432
Publication status	Published - 2015 Apr 3

Bibliographical note

Funding Information:
We thank Kyongwook Choi, Chirok Han, and an anonymous referee for valuable comments and discussion. We are also grateful to Raymond Park for research assistance. Cheolbeom Park acknowledges that this work was supported by a Korea University Grant (K1421171). Usual disclaimers apply.

Publisher Copyright:
© 2014, © 2014 City University of Hong Kong and National Taiwan University.

Keywords

sentiment effect
soccer
stock returns
transaction costs

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

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10.1080/16081625.2014.960432

Cite this

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title = "Soccer sentiment and investment opportunities in the Korean stock market",

abstract = "We have found a significant sentiment effect from national soccer match outcomes on the Korean stock market, consistent with studies on other countries. Further investigation reveals, however, that such sentiment effect is extremely short-lived and the magnitude of ensuing expected returns based on the sentiment effect is about the same as the transaction costs. Therefore, we conclude that although a significant soccer-sentiment effect from losses exists, it seems almost impossible to devise reliable arbitrage opportunities from it due to its short duration and the small magnitude of expected returns.",

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N2 - We have found a significant sentiment effect from national soccer match outcomes on the Korean stock market, consistent with studies on other countries. Further investigation reveals, however, that such sentiment effect is extremely short-lived and the magnitude of ensuing expected returns based on the sentiment effect is about the same as the transaction costs. Therefore, we conclude that although a significant soccer-sentiment effect from losses exists, it seems almost impossible to devise reliable arbitrage opportunities from it due to its short duration and the small magnitude of expected returns.

AB - We have found a significant sentiment effect from national soccer match outcomes on the Korean stock market, consistent with studies on other countries. Further investigation reveals, however, that such sentiment effect is extremely short-lived and the magnitude of ensuing expected returns based on the sentiment effect is about the same as the transaction costs. Therefore, we conclude that although a significant soccer-sentiment effect from losses exists, it seems almost impossible to devise reliable arbitrage opportunities from it due to its short duration and the small magnitude of expected returns.

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KW - transaction costs

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Soccer sentiment and investment opportunities in the Korean stock market

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

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