How relative competitive strength moderates stock price responses after European soccer tournaments

Abstract Stock price responses of soccer clubs to national and international tournaments have been interpreted in light fan investors who are prone emotions. We employ Champions League Europa fixtures between 2004 2020 investigate whether postmatch stock driven by argue that a club’s relative competitive strength can be proxy for investors’ emotions, such as rage disappointment, after losing against strong opponent, which then leads abnormal decreases prices. While we find several factors, the percentage shares held institutional less subject whose effects on returns line with rational information processing, our evidence also suggests effect performance is investor emotion. outline general applicability arising from corporate finance settings.