Original Research

Does national sporting performance affect stock market returns in South Africa?

Ferdi Botha, Carl de Beer
Journal of Economic and Financial Sciences | Vol 6, No 1 | a277 | DOI: https://doi.org/10.4102/jef.v6i1.277 | © 2018 Ferdi Botha, Carl de Beer | This work is licensed under CC Attribution 4.0
Submitted: 27 June 2018 | Published: 30 April 2013

About the author(s)

Ferdi Botha, Department of Economics and Economic History, Rhodes University, South Africa
Carl de Beer, Department of Economics and Economic History, Rhodes University, South Africa

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This study explores whether South African national sporting performance can influence investors in such a way that it has the ability to impact on market returns. Using standard event study methodology, this study determines the constant mean return using the daily All-Share price index on the JSE for the period of 1 January 1990 to 31 December 2010. This study focuses on three of South Africa’s most popular sports, namely soccer, cricket and rugby, and examines if these three sports have the ability to influence market returns. Although there is some evidence of a relationship between stock returns and sporting performance in the descriptive analysis, the regression results indicate that sporting performance in South Africa does not significantly explain abnormal market returns on the JSE. The study provides a number of possible reasons for this finding and concludes by suggesting areas for future research.


sporting performance; stock returns; JSE; event studies; South Africa


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1. Effects of Football Match Results of Croatian National Team on Stock Returns: Evidence from Zagreb Stock Exchange
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Zagreb International Review of Economics and Business  vol: 22  issue: 1  first page: 13  year: 2019  
doi: 10.2478/zireb-2019-0010