Impact of mega-sporting events on the host countries’ stock market performance and economic growth: Evidenced from the Southeast Asian Games

• Main Authors: Chua, Wendy Cai, Jeong, Se Jin Kaibigan, Ke, Catherine Ke, Lin, Michelle Chen
• Format: text
• Language: English
• Published: Animo Repository 2023
• Subjects: Hosting of sporting events—Economic aspects—Southeast Asia; Behavioral Economics; Economics; Finance
• Online Access: https://animorepository.dlsu.edu.ph/etdb_finman/80; https://animorepository.dlsu.edu.ph/context/etdb_finman/article/1066/viewcontent/Impact_of_Mega_Sporting_Events_on_the_Host_Countries__Stock_Marke.pdf
• Institution: De La Salle University

The study assessed the impact of the 2011-2021 SEA Games on the stock markets and economies of host countries namely Indonesia, Singapore, Malaysia, Philippines, and Vietnam. It covered daily closing index prices surrounding the event period for each event and further covered the SDG 8 economic indicators, particularly the GDP growth rate, GDP per capita growth rate, GDP per employed person growth rate, and unemployment rate. The researchers performed various statistical methods, including descriptive statistics, ANOVA test, EGARCH model, Granger causality test, Kruskal-Wallis test, and Wilcoxon Signed-Rank test. These methods revealed whether each SEA Games had significantly impacted the stock market of its host country and whether the five SEA Games had significantly impacted the economies of host countries using non-parametric methods. The 2017 and 2021 SEA Games had a significant impact on stock market returns and volatility of FBM KLCI and VNI, respectively, during the event. STI’s market volatility during the event was also affected by the 2015 SEA Games. Furthermore, the SEA Games in 2015, 2017, and 2021 had significant impact on their host countries’ market returns and volatilities after the event. Likewise, there are statistically significant variations in economic indicators, with the exception of the unemployment rate, before and during the event. The study’s findings provide benefits to global traders and investors, potential and repeat host countries, and sustainable development goals. Keywords: ASEAN, SEA Games, stock market, economy, returns, volatility, stock market index, SDG, EGARCH, Granger causality Test, Kruskal-Wallis Test, Wilcoxon Test