A number of papers have shown that human behaviour is often inconsistent with the type of rationality that has existed traditionally in finance and economics. People ask whether the behaviour of investors irrationally could impact on asset prices. Often in the absence of new information psychologists show the presence of another source of irrationality: mood. Past working papers of the authors have regarded the behaviour of individual investor in different situations and our empirical tests have shown that sometimes the irrationally could impact on asset prices. Our interest is centred on football since a number of different contexts show that football matches bring us laughter and tears, bliss and pain, so they could change the investor's mood. Therefore this study is concerned with the literature on asset pricing anomalies and the goal is to verify whether football results have a sufficiently large impact on mood to justify the reaction of prices. We probe Italian market by analysing three Italian football teams: Rome, Lazio, Juventus, which have decided to quote at the beginning of this millennium. Football data, relative to Italian teams, shows that the average prices/returns immediately after wins are higher than average prices/returns after unsuccessful matches. We examined also the impact of lost and draw matches, to check for possible inconsistent results, and it also appears, on this regard, that Italian investors dislike matches ending in ties.

“Football and Mood in Italian Stock Exchange”,

FASANO, ANTONIO;
2007-01-01

Abstract

A number of papers have shown that human behaviour is often inconsistent with the type of rationality that has existed traditionally in finance and economics. People ask whether the behaviour of investors irrationally could impact on asset prices. Often in the absence of new information psychologists show the presence of another source of irrationality: mood. Past working papers of the authors have regarded the behaviour of individual investor in different situations and our empirical tests have shown that sometimes the irrationally could impact on asset prices. Our interest is centred on football since a number of different contexts show that football matches bring us laughter and tears, bliss and pain, so they could change the investor's mood. Therefore this study is concerned with the literature on asset pricing anomalies and the goal is to verify whether football results have a sufficiently large impact on mood to justify the reaction of prices. We probe Italian market by analysing three Italian football teams: Rome, Lazio, Juventus, which have decided to quote at the beginning of this millennium. Football data, relative to Italian teams, shows that the average prices/returns immediately after wins are higher than average prices/returns after unsuccessful matches. We examined also the impact of lost and draw matches, to check for possible inconsistent results, and it also appears, on this regard, that Italian investors dislike matches ending in ties.
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11386/1954980
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact