Cricket, Colonialism and the Capital Market: Winning Does Not Matter but Losing Hurts

18 Pages Posted: 13 Oct 2012

See all articles by R. Srinivasan

R. Srinivasan

Indian Institute of Management (IIMB), Bangalore - Finance & Control

Date Written: March 28, 2002

Abstract

There is increasing evidence of the inadequacy of National1 explanations of asset-pricing. It has been established empirically that mood, induced by such natural phenomena as lunar phases or sunshine, affects asset prices. This paper provides evidence, from one-day cricket international (ODI) matches played by India, that there is a significant negative impact on the daily stock market returns when the national team loses. Empirically, losing in India matters somewhat more than losing outside. The mood induced by losing a match appears to conditioned by history, in that losing to nations that represent the 'colonizers' matters but not losing to nations that share India's experience of being 'colonized'.

Suggested Citation

Srinivasan, Raghavan, Cricket, Colonialism and the Capital Market: Winning Does Not Matter but Losing Hurts (March 28, 2002). IIM Bangalore Research Paper No. 184, Available at SSRN: https://ssrn.com/abstract=2157405 or http://dx.doi.org/10.2139/ssrn.2157405

Raghavan Srinivasan (Contact Author)

Indian Institute of Management (IIMB), Bangalore - Finance & Control ( email )

Bannerghatta Road
Bangalore, 560 076
India

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