Research examining the link between England’s FTSE 100 stock market index and their soccer team indicates the index falls after a defeat or a tie, and rises if the team wins.
The study conducted by researchers from English universities Bangor, Leeds and Newcastle examined the FTSE 100 index results based on 290 soccer games England has played between 1984 and 2009.
The study found the largest gains and declines in the stock market occurred upon the conclusion of games England played, especially after World Cup matches.
Slightly lower share price gains and losses were noticed after friendly and qualifying matches.
The effect of international sporting results on stock markets was well documented and often attributed to the psychological effects of the result, said researchers.
Professor Robert Hudson of the Newcastle University Business School said: ”Stockbrokers, like everyone else, can be carried away in the depression associated with an England loss at the World Cup.”
An early England exit at the 2010 World Cup in South Africa could have negative business effects on the alcohol, media, leisure and sportswear industries, the report added.
Dr. John Ashton of the Bangor University Business School said: ”If England is eliminated from the World Cup early, it may be a good day to look for bargains on the stock market.”
