An empirical study on the stock market performance of host countries before, during and after the Olympic Games and FIFA World Cup

• Main Authors: Go, Theodore Nicholas D., Wong, Elaine Joyce N., Wong, Kassandra S., Zabat, Paula Maria M.
• Format: text
• Language: English
• Published: Animo Repository 2016
• Subjects: Stock exchanges; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/8987
• Institution: De La Salle University

This study examines the impact of 2 major international mega-sporting events. The Summer Olympic Games and the FIFA World Cup on the stock market performances the of host countries. In particular, this study uses the Ordinary Least Squares Method to investigate the stock market reaction before, during and after the Summer Olympic Games and the FIFA World Cup. The events that were analyzed for the Olympics in this study were the 2000 Sydney Olympics, 2004 Athens Olympics and 2008 Beijing Olympics. For the FIFA World Cup, the 2002 Korea/Japan World Cup, 2006 Germany World Cup and 2010 South Africa World cup were studied. An event study was conducted in the sector analysis to determine the effects these international mega-sporting events on the market sectors. The sectors included in the study were the consumer staples, financial and industrial sectors. The empirical results indicate that there is an insignificant effect on the host countries' stock markets as a whole for both mega-sporting events. However, these mega-sporting events gave off a significant effect on the selected market sectors.