Sports Sentiments and Financial Markets: Shadenfreude in Rivalry of India and Pakistan

Javaria Asim, Alia Ahmed, Muhammad Farhan Asif, Jawad Rahim Afridi


This paper examines the reaction of sports (International Cricket) outcomes on stock markets of Pakistan and India. Valuation of stock markets is taken in terms of abnormal stock returns around the dates of one day international (ODI) matches. Event study has been employed in this paper for 605 ODI matches played by Pakistan and 660 ODI matches played by India in period of 1990-2019. Findings suggest that on next trading day following the match stock returns are positive after win and negative after losing the game in both countries. In this paper one novel finding is existence of negative abnormal returns one day before matches due to anxiety of fan investors before game starts. Another important aspect of rivalry is examined as two rival countries are taken as sample. Results suggest that fan investors experience schadenfreude as they feel positive when their national team wins or rival team loses and feel bad when their team loses or rival wins. This optimism or pessimism results in abnormal stock returns mentioned in results of this paper.


Sports sentiments, Financial markets, Pakistan

Full Text:



Akerlof, G. A., & Shiller, R. J. (2009). Animal Spirits: Wie Wirtschaft wirklich funktioniert. Campus Verlag.

Akhigbe, A., Newman, M., & Whyte, A. M. (2017). Predictable sports sentiment and local trading. Financial Management, 46(2), 433-453.

Al-Hajieh, H., Redhead, K., & Rodgers, T. (2011). Investor sentiment and calendar anomaly effects: A case study of the impact of Ramadan on Islamic Middle Eastern markets. Research in International Business and Finance, 25(3), 345-356.

Anghel, D. G. (2018). Market-Level Sports Sentiment: The case of the Romanian Frontier Stock Market. The Review of Finance and Banking, 10(2), 95-108.

Barberis, N., Shleifer, A., & Vishny, R. (1998). A model of investor sentiment. Journal of financial economics, 49(3), 307-343.

Benkraiem, R., Louhichi, W., & Marques, P. (2009). Market reaction to sporting results: The case of European listed football clubs. Management Decision, 47(1), 100-109.

Bernile, G., & Lyandres, E. (2011). Understanding investor sentiment: The case of soccer. Financial Management, 40(2), 357-380.

Berument, M. H., Ceylan, N. B., & Ogut-Eker, G. (2009). Soccer, stock returns and fanaticism: Evidence from Turkey. The social science journal, 46(3), 594-600.

Brealey, M., & Myers, S. (2008). Allen, Principles of Corporate Finance. New York, NY.

Brown, G. W., & Cliff, M. T. (2004). Investor sentiment and the near-term stock market. Journal of empirical finance, 11(1), 1-27.

Chang, S. C., Chen, S. S., Chou, R. K., & Lin, Y. H. (2012). Local sports sentiment and returns of locally headquartered stocks: A firm-level analysis. Journal of Empirical Finance, 19(3), 309-318.

Chen, A. H., & Siems, T. F. (2004). The effects of terrorism on global capital markets. European journal of political economy, 20(2), 349-366.

Curatola, G., Donadelli, M., Kizys, R., & Riedel, M. (2016). Investor sentiment and sectoral stock returns: Evidence from World Cup games. Finance Research Letters, 17, 267-274.

Daniel, K., Hirshleifer, D., & Subrahmanyam, A. (1998). Investor psychology and security market under‐and overreactions. The Journal of Finance, 53(6), 1839-1885.

De Long, J. B., Shleifer, A., Summers, L. H., & Waldmann, R. J. (1990). Noise trader risk in financial markets. Journal of political Economy, 98(4), 703-738.

Demir, E., & Rigoni, U. (2017). You lose, I feel better: Rivalry between soccer teams and the impact of schadenfreude on stock market. Journal of Sports Economics, 18(1), 58-76.

Dimic, N., Neudl, M., Orlov, V., & Äijö, J. (2018). Investor sentiment, soccer games and stock returns. Research in International Business and Finance, 43, 90-98.

Edmans, A., D. Garcıa and Øyvind Norli. “Sports Sentiment and Stock

Returns.” Journal of Finance, 62, (2007), pp. 1967–1998.

Fan, Q., & Wang, T. (2018). Game day effect on stock market: Evidence from four major sports leagues in US. Journal of Behavioral and Experimental Finance, 20, 9-18.

Frieder, L., & Subrahmanyam, A. (2004). Nonsecular regularities in returns and volume. Financial Analysts Journal, 60(4), 29-34.

Gerlach, J. R. (2011). International sports and investor sentiment: do national team matches really affect stock market returns?. Applied financial economics, 21(12), 863-880.

Gkillas, K., Gupta, R., Lau, C. K. M., & Suleman, M. T. (2020). Jumps beyond the realms of cricket: India's performance in One Day Internationals and stock market movements. Journal of Applied Statistics, 47(6), 1109-1127.

Graziano, E. A., & Vicentini, F. (2017). Football cultural events and stock market returns: the case of FIFA World Cup. International Journal of Environmental Policy and Decision Making, 2(2), 167-178.

Hirshleifer, D., & Shumway, T. (2003). Good day sunshine: Stock returns and the weather. The Journal of Finance, 58(3), 1009-1032.

Kamstra, M. J., Kramer, L. A., & Levi, M. D. (2000). Losing sleep at the market: The daylight saving anomaly. American Economic Review, 90(4), 1005-1011.

Kaplanski, G., & Levy, H. (2010). Sentiment and stock prices: The case of aviation disasters. Journal of Financial Economics, 95(2), 174-201.

Keynes, J.M. (1936), “The general theory of money, interest and employment”, reprinted in The Collected Writings of John Maynard Keynes, NJ.

Lee, J. S., & Chiu, C. W. (2016). Sport Sentiments and Stock Returns: Example of FIFA World Cups. Applied Economics and Finance, 4(2), 44.

Mishra, V., & Smyth, R. (2010). An examination of the impact of India's performance in one-day cricket internationals on the Indian stock market. Pacific-Basin Finance Journal, 18(3), 319-334.

Nachimuthu, G. S., Selvam, C. (2018). Impact of Indian Cricket Performance on Bombay Stock Exchange. Research Journal of Social Science Management, 8(1).

Palomino, F., Renneboog, L., & Zhang, C. (2009). Information salience, investor sentiment, and stock returns: The case of British soccer betting. Journal of Corporate Finance, 15(3), 368-387.

Raheman, A., Auqs-e-mah Kiyani, S. N., Sohail, M. K., & Zulfiqar, B. (2015) Sports and Stock Returns Volatility: A Case of Cricket Matches Played by Pakistan with Asian Countries. Sci.Int. 27(3), 2623-2632

Renneboog, L., & Vanbrabant, P. (2000). Share Price Reactions to Sporty Performances of Soccer Club Listed on the London Stock Exchange and the AIM. Tilburg University.

Ritter, J. R. (2003). Behavioral finance. Pacific-Basin finance journal, 11(4), 429-437.

Saunders, E. M. (1993). Stock prices and Wall Street weather. The American Economic Review, 83(5), 1337-1345.

Sakkas, A., & Urquhart, A. (2018). Basking in reflected glory and stock returns.

Škrinjarić, T., & Barišić, P. (2019). Effects of football match results of croatian national team on stock returns: Evidence from Zagreb stock exchange. Zagreb International Review of Economics and Business, 22(1), 13-45.

Srinivasan, R. (2004). Cricket and the capital market: Winning does not matter but losing hurts. Asian Review of Accounting, 12(2), 94-107.

Verstoep, A., Singh, H., Nguyen, A., & Bhattacharya, S. (2015). Short-term impacts of the cricket match performances on national share markets–a case study of India and Australia. Sport in society, 18(3), 263-274.

Worthington, A. C. (2007). National exuberance: A note on the Melbourne Cup effect in Australian stock returns. Economic Papers: A journal of applied economics and policy, 26(2), 170-179.

Yuan, K., Zheng, L., & Zhu, Q. (2006). Are investors moonstruck? Lunar phases and stock returns. Journal of Empirical Finance, 13(1), 1-23.

Zhou, G. (2018). Measuring investor sentiment. Annual Review of Financial Economics, 10, 239-259.


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License
Sarhad Journal of Management Sciences by Sarhad University of Science & Information Technology is licensed under a Creative Commons Attribution 4.0 International License.
Based on a work at