| Abstract: |
This research assesses the influence of hosting major international sporting
competitions on the host countries’ stock market performance before and after
the announcement of such events. Specifically, this study explores whether
stock markets of hosting countries experience cumulative average abnormal
return (CAAR) during the aforementioned period. For the purposes of
investigation, the study considers announcements of the 18th Asian Games and
30th SEA Games hosted by Indonesia and the Philippines, respectively. The LQ45
index of the Indonesia Stock Exchange (IDX) and PSEi index of the Philippines
Stock Exchange (PSE) were chosen to test the significance of these events. It
is found that only PSE has experienced a significantly positive CAAR for the
event. Findings of this study can make a significant contribution to helping
national governments and investors understand the significance of sports to
the economies of developing countries and how major sports events can improve
stock market efficiency. |