Does On-stage Performance of Esports Teams Impact Stock Prices: Evidence From the Astralis Group

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.

KEYWORDS:

• esports
• event study
• market efficiency
• sports finance
• stock price

JEL CLASSIFICATION:

• G14
• L83

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).