ABSTRACT
The recent establishment and popularity of professional esports leagues, coupled with the public listing of the Denmark-based esports team Astralis Group, presents an opportunity to assess whether wins and losses impact a team`s stock price in nontraditional sports. We provide empirical evidence that wins in championship matches impact stock returns for Astralis in a regression-based event study. This suggests that investors perceive championship wins as an indicator of future earnings growth of the group.
Acknowledgments
We acknowledge financial support from the Rikkyo University College of Business Collaborative Research Project Fund. We thank Miikka Lehtonen and Benjamin Lim for comments.
Disclosure statement
No potential conflict of interest was reported by the author(s).