Short-Term Impacts of the Cricket Match Performances on National Share Markets – A Case Study of India and Australia

Sport in Society, 1-12, 2014

Posted: 7 Sep 2014

See all articles by Andrew Verstoep

Andrew Verstoep

Deakin University

Harminder Singh

Deakin University - School of Accounting, Economics and Finance

Annette Nguyen

Deakin University

Sukanto Bhattacharya

Deakin University - Deakin Business School

Date Written: September 3, 2014

Abstract

We investigate the impact that investor sentiment can have on stock market following performances by the national cricket teams of India and Australia in one-day cricket matches from 1990 to 2011. Motivated by previous findings of cricket’s impacts on stock markets, this study expands on previous research by investigating whether performances of individuals within the teams can also have an impact on their respective leading stock indices. Using an event study, we find no evidence of player or team performances significantly impacting the stock or futures markets. However, we find evidence of a ‘mood effect’ of poor performance by key players of national cricket teams in terms of significant drop in trading volumes in the following day. Our research poses and statistically examines some interesting questions and opens up the field for further research on this intriguing topic of sporting event impacts on national economies.

Keywords: stock market, return, event study

JEL Classification: G1

Suggested Citation

Verstoep, Andrew and Singh, Harminder and Nguyen, Annette and Bhattacharya, Sukanto, Short-Term Impacts of the Cricket Match Performances on National Share Markets – A Case Study of India and Australia (September 3, 2014). Sport in Society, 1-12, 2014, Available at SSRN: https://ssrn.com/abstract=2491318

Andrew Verstoep

Deakin University ( email )

75 Pigdons Road
Victoria, Victoria 3216
Australia

Harminder Singh (Contact Author)

Deakin University - School of Accounting, Economics and Finance ( email )

221 Burwood Highway
Burwood, Victoria 3215
Australia

Annette Nguyen

Deakin University ( email )

75 Pigdons Road
Victoria, Victoria 3216
Australia

Sukanto Bhattacharya

Deakin University - Deakin Business School ( email )

Australia

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