Journal of Economics and Finance

, Volume 35, Issue 4, pp 382–416 | Cite as

Market impact of international sporting and cultural events



We study market reaction to the announcements of the selected country hosting the Summer and Winter Olympic Games, the World Football Cup, the European Football Cup and World and Specialized Exhibitions. We generalize previous results analyzing a large number and different types of mega-events, evaluate the effects for winning and losing countries, investigate the determinants of the observed market reaction and control for the ex ante probability of a country being a successful bidder. Average abnormal returns measured at the announcement date and around the event are not significantly different from zero. Further, we find no evidence supporting that industries, that a priori were more likely to extract direct benefits from the event, observe positive significant effects. Yet, when we control for anticipation, the stock price reactions around the announcements are significant.


Market Efficiency Event Studies Mega-Events Anticipation 
JEL Classification G14—Information and Market Efficiency Event Studies G310—Fixed Investment Studies 



Ana Paula Serra acknowledges the generous support of CEMPRE—Centro de Estudos Macroeconómicos e Previsão—a research unit financed by FCT—Fundação para a Ciência e a Tecnologia, Portugal through Programa Operacional Ciência, Tecnologia e Inovação (POCTI) of Quadro Comunitário de Apoio III, which is financed by FEDER and Portuguese funds.


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Copyright information

© Springer Science+Business Media, LLC 2009

Authors and Affiliations

  1. 1.Faculdade de Economia da Universidade do PortoPortoPortugal
  2. 2.CEMPREFaculdade de Economia da Universidade do PortoPortoPortugal

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