Gold, Silver, Bronze or Tin? The Short and Long Term Effects of Mega Sporting Events

29 Pages Posted: 13 Jul 2012

See all articles by Stephen P. Ferris

Stephen P. Ferris

University of Missouri at Columbia - Department of Finance

Sulgi Koo

affiliation not provided to SSRN

Kwangwoo Park

College of Business, Korea Advanced Institute of Science and Technology (KAIST)

David T. Yi

Xavier University - Department of Economics

Date Written: July 1, 2012

Abstract

This paper examines the short and long term effects of the Summer Olympics, Winter Olympics, and the World Cup on the economy of the host country. We find that selection for hosting the Summer Olympics only produces a significant positive announcement period effect in the host country’s domestic equity market. This effect however resides solely in the construction and building materials industry. We further show that the Summer Olympic game hosting nations generate significant positive economic performance up to 3 years prior to hosting the event, while this positive economic performance disappears 1 year after hosting such an event. Our results suggest that contrary to the conventional claims by mega sports organizers, it appears that there are no significant long-run economic gains from hosting such mega sporting events.

Keywords: Olympics, World Cup, Announcement Effect, Economic Performance

JEL Classification: G10, R11

Suggested Citation

Ferris, Stephen P. and Koo, Sulgi and Park, Kwangwoo and Yi, David T., Gold, Silver, Bronze or Tin? The Short and Long Term Effects of Mega Sporting Events (July 1, 2012). KAIST College of Business Working Paper Series No. 2012-005, Available at SSRN: https://ssrn.com/abstract=2104963 or http://dx.doi.org/10.2139/ssrn.2104963

Stephen P. Ferris

University of Missouri at Columbia - Department of Finance ( email )

214 Middlebush Hall
Columbia, MO 65211
United States
573-882-6272 (Phone)
573-884-6296 (Fax)

Sulgi Koo

affiliation not provided to SSRN

Kwangwoo Park (Contact Author)

College of Business, Korea Advanced Institute of Science and Technology (KAIST) ( email )

85 Hoegiro
Seoul 02455
Korea, Republic of (South Korea)
82-2-958-3540 (Phone)
82-2-958-3604 (Fax)

David T. Yi

Xavier University - Department of Economics ( email )

United States

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