Stock market reactions to FIFA World Cup announcements: An event study

Amélie Charles (1) , Olivier Darné (2)

1 Audencia Business School
2 LEMNA - Laboratoire d'économie et de management de Nantes Atlantique

This article examines stock market reactions in countries competing to hold the FIFA World Cups around the time of the winning bid announcements. We analyze the announcement effects of winning and losing, beginning with 1994 FIFA World Cup announced in 1988, up until the announcement of the 2022 FIFA World Cup in 2010, with 18 countries, including of a mixture of developing and developed countries.. We observe no significant positive stock price reaction at the announcement dates for the winners, except for Qatar for the 2022 FIFA World Cup. However, we find significant cumulative abnormal returns for some countries. For the losing bidders, the results show significant negative abnormal return at the announcement dates for Morocco and Egypt for the 2010 FIFA World Cup, and again for Morocco for the 1998 FIFA World Cup. We also find that, on average, the losing bidders display significant negative CARs.

Mots clés: Market reactions; FIFA World cup; Event study

Domaines: Econométrie de la finance [q-fin.ST]

Amélie Charles, Olivier Darné. Stock market reactions to FIFA World Cup announcements: An event study. Economics Bulletin, 2016, 36 (4), pp.2028-2036. ⟨hal-01395333⟩