Market anomaly
: 2014th World Cup effect

  • José Maria Candido Alves (Student)

Student thesis: Master's Thesis

Abstract

Inspired by the World Cup effect discovered by Kaplanski and Levy (2010), we decided to in-vestigate the 2014th edition. Our findings were conclusive. The average return on the U.S. stock market during the latest World Cup was +0.87%, compared to an average of -2.42% of all past World Cups; hence, the anomaly disappeared. We suggest its disappearance was driven by: (1) the growth popularity of Football in the U.S. and its influence on the local stock market, and by (2) the publication of Kaplanski and Levy (2010 and 2014) followed by an investment strategy, which allowed sophisticated investors to take advantage of the anomaly.
Date of Award2015
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorFranck Bancel (Supervisor)

Keywords

  • Behavioral finance
  • Stock market anomalies
  • Market efficiency
  • Investor sentiment
  • Flow of information
  • Abnormal returns
  • Football

Designation

  • Mestrado em Finanças

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