Jian (Vincent) Gao

  • Research

  • Warwick Business School, the University of Warwick

  • Squash

LinkedIn

https://www.linkedin.com/in/jian-gao/

Behavioural Finance Explained

This is the first video that I try to explain behavioural finance to laypeople so as to help their day-to-day life.

We use novel data on cross-listing securities in nine European stock ex- changes, to study the effect of international soccer match results on stock performance. After controlling for a series of country- and company-specific factors, Hofestede index, turnover ratio, dividend yield, and inverse security price, we regress cross-listing premium on the results of corresponding international soccer matches, UEFA Cup, Champions League, Euro Cup, and World Cup, played between 1994 and 2018, testing the model on various subgroups-famous companies, lottery-type companies, and retail-investors- holding companies, and different matches-the games played between Ger- many and the United Kingdom, and the ‘surprising’ games, but finding no significant correlation between cross-listing premium and soccer effects. One explanation of failing to reject the hypothesis that stock performance is not affected by international soccer match results might be that cross-listing securities share a relatively small proportion in each market in the sample so that they might be hard to capture investor sentiment in a large scale. In addition, the way of sampling countries might commit a fallacy that European countries share cultural, political, and economic similarity, reducing national sentiment induced by the results of soccer matches to some degree.