The Daily Stat from Harvard Business Review

 

January 16, 2015 Excitement Over Sports Teams Spills Over Into Prices of Local Stocks The stocks of American companies headquartered near the home fields or courts of pro sports teams that are doing well outperform those of companies whose local teams are faring poorly, with the difference amounting to about 30 basis points per month, say Christos Pantzalis of the University of South Florida and Jung Chul Park of Auburn University. Investors' tendency to invest in local stocks has been well documented, and the research shows that the behavior of this local base of investors is affected by the results of nearby NFL, NHL, MLB, and NBA teams. The effect is so strong that the researchers were able to use it to devise an investment strategy that, in theory at least, would generate abnormal returns ranging from 0.08% to 0.13% per week. SOURCE: Exuberance out of left field: Do sports results cause investors to take their eyes off the ball?

BEST SELLERS HBR's 10 Must Reads: The Essentials | HBR's 10 Must Reads Ebook Boxed Set | HBR Guide to Persuasive Presentations Ebook + Video Case Study | HBR Guide to Better Business Writing | HBR Guide to Getting the Right Work Done

FEATURED PRODUCT Wiser: Getting Beyond Groupthink to Make Groups Smarter HBR Press Book We’ve all been involved in group decisions--and they’re hard. And they often turn out badly. Why? Many blame bad decisions on “groupthink” without a clear idea of what that term really means. Now, “Nudge” coauthor Cass Sunstein and leading decision-making scholar Reid Hastie shed light on the specifics of why and how group decisions go wrong--and offer tactics and lessons to help leaders avoid the pitfalls and reach better outcomes. They explain in clear and fascinating detail the distinct problems groups run into and provide methods and advice for making groups smarter. These approaches include silencing the leader so that the views of other group members can surface, rethinking rewards and incentives to encourage people to reveal their own knowledge, thoughtfully assigning roles that are aligned with people's unique strengths, and more. With examples from a range of organizations--from Google to the CIA--and written in an engaging and witty style, “Wiser” will not only enlighten you; it will help your team and your organization make better decisions--decisions that lead to greater success. Buy Now

FEATURED PRODUCT HBR Guide to Building Your Business Case Ebook + Tools HBR Press Book This enhanced eBook version of the HBR Guide to Building Your Business Case includes downloadable tools and templates to help you get started on your own case right away. You've got a great idea that will increase profitability or productivity – but how do you get approval for the budget and resources to make it happen? By building a business case that clearly shows your idea's value. Available exclusively through HBR.org. Buy Now

ADVERTISEMENT

HBR.ORG | THE MAGAZINE | TOPICS | BOOKS | CASES | STORE | SUBSCRIBE TO HBR UNSUBSCRIBE | NEWSLETTERS PRIVACY POLICY | CONTACT Copyright © 2015 Harvard Business School Publishing, an affiliate of Harvard Business School. All rights reserved. Harvard Business Publishing 60 Harvard Way Boston, MA 02163 CUSTOMER SERVICE: 800-545-7685 (US/Canada) 1-617-783-7600 (outside the U.S. and Canada)