nep-spo New Economics Papers
on Sports and Economics
Issue of 2022‒03‒21
three papers chosen by
Humberto Barreto
DePauw University

  1. Impacts of International Sports Events on the Stock Market: Evidence from the Announcement of the 18th Asian Games and 30th Southeast Asian Games By Dwipraptono Harjito; Md. Mahmudul Alam; Rani Dewi
  2. Human Capital Reallocation Across Firms: Evidence from Idiosyncratic Shocks By Erik P. Gilje; Jérôme P. Taillard; Linghang Zeng
  3. Air Pollution, Avoidance Behavior and Labor Supply: Evidence from the United States By Djoumessi, Berenger Tiague

  1. By: Dwipraptono Harjito (Universitas Islam Indonesia); Md. Mahmudul Alam (UUM - Universiti Utara Malaysia); Rani Dewi (Universitas Islam Indonesia)
    Abstract: This research assesses the influence of hosting major international sporting competitions on the host countries' stock market performance before and after the announcement of such events. Specifically, this study explores whether stock markets of hosting countries experience cumulative average abnormal return (CAAR) during the aforementioned period. For the purposes of investigation, the study considers announcements of the 18th Asian Games and 30th SEA Games hosted by Indonesia and the Philippines, respectively. The LQ45 index of the Indonesia Stock Exchange (IDX) and PSEi index of the Philippines Stock Exchange (PSE) were chosen to test the significance of these events. It is found that only PSE has experienced a significantly positive CAAR for the event. Findings of this study can make a significant contribution to helping national governments and investors understand the significance of sports to the economies of developing countries and how major sports events can improve stock market efficiency.
    Keywords: Stock market,Southeast Asian Games,Asian games,International sporting event,Event study
    Date: 2021
  2. By: Erik P. Gilje; Jérôme P. Taillard; Linghang Zeng
    Abstract: We study human capital reallocation following firm-specific idiosyncratic shocks. Theory offers diverging predictions as to whether human capital gets reallocated to its most productive use following these shocks. To empirically test these predictions, we focus on relegation battles in the English Premier League. This setting offers well identified idiosyncratic shocks as well as both individual-level and firm-level productivity metrics. We find that human capital exits firms after a negative idiosyncratic shock. Specifically, we find that more productive players move to more productive clubs and maintain their long-term productivity. They get replaced with lower productivity players. Overall, our results show that in a setting with highly transferable skills, idiosyncratic shocks lead to a reallocation of human capital that moves an industry towards a better overall match between individual-level and firm-level productivity.
    JEL: G31 G32 G33 J24
    Date: 2022–02
  3. By: Djoumessi, Berenger Tiague
    Abstract: I estimate the effects of exposure to ambient air pollution on daily health-related behaviors, weekly labor supply, and productivity at the workplace among US individuals. Using an individual fixed-effects regression approach, I examine how increases in daily outdoor air quality influence the time spent on daily health-related activities. I find that only when the air quality index becomes very unhealthy or hazardous, there is a 21% decrease in the minutes spent on outdoor sport and exercise activities, and a 263% increase in minutes spent watching TV. I also implement an instrumental variable (IV) strategy using wind direction as an exogenous shock to satellite-based aerosol optical depth to understand how changes in air pollution affect labor supply. I find that increase in the total aerosol optical depth (AOD) leads to no overall change in labor supply decisions, both on the decision to go to work and the weekly worked hours, but it does so on the likelihood of going to work for women. The effects across subgroups also suggest differential effects in avoidance behaviors across the income distribution, age groups, occupations, race, and ethnicity, especially when the air quality is very unhealthy or hazardous.
    Date: 2022–02–15

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