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Stock market reactions to hosting the FIFA World Cup

M.Com. (Financial Management) / This study was an investigation into the impact of hosting the FIFA World Cup soccer tournament on the stock market of the host country. The investigation looked at whether stock markets react efficiently or show a positive reaction to the hosting of the FIFA World Cup. Hosting the FIFA World Cup was assessed at two event dates: the announcement date where the host country’s winning bid is announced and the when the tournament starts. An event study research methodology was used to investigate the impact of hosting the FIFA World Cup on the stock exchange of the host country, by examining the movement of CARs across the two event windows. It was found that stock markets react differently to the announcement of the tournament and event start dates. The results of this study show that the stock market does not always regard the hosting of the FIFA World Cup as positive news, therefore resulting in either a positive or negative stock market reaction. Markets do however appear to be efficient and incorporated all information in stock prices. The test statistics showed a number of statistically insignificant results; hence the presented results do not support the hypotheses that the FIFA World Cup has a significant impact on the host country stock market during the announcement and hosting stages.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uj/uj:11440
Date10 June 2014
CreatorsRamdas, Bijendradas
Source SetsSouth African National ETD Portal
Detected LanguageEnglish
TypeThesis
RightsUniversity of Johannesburg

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