THE EFFECT OF THE 2018 FIFA WORLD CUP COMPETITION RESULTS ON STOCK RETURN IN FRANCE
Keywords:
Investor Sentiment, CAC 40 Index, GARCH ModelAbstract
Several studies have examined the effects of inverter sentiment on the stock markets. They are believed that different elements of attitude, confidence, emotions, and feelings have both positive and negative effects on a security's yield. This study aimed to examine the impact of France's World Cup results on the return of the CAC 40 index, as, in 2018, France was the winner of the World Cup final. The closing price of the CAC 40 price index from January 1, 2016, to December 31, 2018, based on data from the Euronext Paris Stock Exchange for a total of 767 days, by using the generalized autoregressive conditional heteroskedasticity (GARCH). The results found that the historical CAC 40 returns are in line with the current CAC 40 returns, and these win results affect the return of the CAC 40 returns in the same direction. In contrast, draw results affect the return of the CAC 40 price index in the opposite direction.
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