Sports Sentiment Effect at Oslo Stock Exchange

Abstract

This thesis has investigated the Oslo Stock Exchange’s reaction to results of the seven most popular sports in Norway. Investors are said to be rational and stock prices should reflect all available information and thereby follow the efficient market hypothesis. To test our hypothesis, a simple OLS regression was used on both raw returns and normalized returns. We found that sports results did not have an impact on Oslo Stock Exchange and its stock returns, during our sample period from 1983-2016. This conclusion did not change after taking expectations into account, nor when we removed all weekend events.