Stock Markets and Major Sport Events: Evidence from Cricket World Cup 2019

Abstract

The effect of major sport events on stock markets has been studied by many researchers, most of them focused on soccer without considering if it’s the most popular sport in the countries under study and without considering if the matches are important or not. The enquiry that the researcher tried to answer in this study was whether the stock market is affected by the results of the major event of the sport that is the most popular in the country of that market. To answer this question, the researcher studied the effect of the world cup of cricket, the most popular sport in India, on the main Indian stock exchanges: Bombay stock exchange and national stock exchange. A quantitative approach was followed to conduct this study using data for the period from May 24,2018 to July 15, 2019. The collected data was analyzed using ordinary least squares method and one sample t-test. Study conclusions indicated that loss results in the world cup have a significant positive effect on the stock prices in the two stock exchanges while there was no significant effect for winning results.