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Investor attention during soccer World Cups

Manuel Lobato (Department of Finance, University of Puerto Rico - Rio Piedras, San Juan, Puerto Rico, USA)
Mario Jordi Maura (Department of Finance, University of Puerto Rico - Carolina, Carolina, Puerto Rico, USA)
Javier Rodriguez (Graduate School of Business, University of Puerto Rico - Rio Piedras, San Juan, Puerto Rico, USA)
Herminio Romero-Perez (Department of Finance, University of Puerto Rico - Carolina, Carolina, Puerto Rico, USA)

American Journal of Business

ISSN: 1935-5181

Article publication date: 24 October 2023

Issue publication date: 5 March 2024

52

Abstract

Purpose

This study aims to examine investor attention by exploring the trading behavior of investors in US-based exchange traded funds (ETFs) of countries active in the Federation Internationale de Football Association (FIFA) World Cups.

Design/methodology/approach

The present study employs event study methodology to measure abnormal returns and excess trading volume of country-specific ETFs during six FIFA World Cups. The sample of ETFs includes 19 participating countries.

Findings

Consistent with investor behavior that might be explained by attention effect, the study finds that country-specific ETFs from participating countries do indeed behave differently during FIFA World Cups events. The authors find significant evidence of abnormal trading volume and, albeit weaker, abnormal returns during cups.

Originality/value

This study contributes to the literature on investor behavior, linking investor attention with salient sports events.

Keywords

Citation

Lobato, M., Maura, M.J., Rodriguez, J. and Romero-Perez, H. (2024), "Investor attention during soccer World Cups", American Journal of Business, Vol. 39 No. 1, pp. 29-39. https://doi.org/10.1108/AJB-09-2022-0141

Publisher

:

Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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