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The Pitch Rather Than the Pit: Investor Inattention, Trading Activity, and FIFA World Cup Matches
Author(s) -
EHRMANN MICHAEL,
JANSEN DAVIDJAN
Publication year - 2017
Publication title -
journal of money, credit and banking
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.763
H-Index - 108
eISSN - 1538-4616
pISSN - 0022-2879
DOI - 10.1111/jmcb.12398
Subject(s) - stock (firearms) , business , stock market , financial market , financial economics , monetary economics , finance , economics , geography , context (archaeology) , archaeology
This paper analyzes stock market trading in 15 countries during the 2010 and 2014 soccer FIFA World Cups. We find evidence for substantial investor inattention during these major sporting events. The lack of attention for the trading pit is particularly large when the national soccer team is competing, with traded volumes declining by as much as 48%. During national team matches, prices on local stock markets can temporarily decouple from global financial market developments. These findings suggest that major sporting events can act as a laboratory in which to investigate investor inattention.