The impact of football match scores of rivals on stock prices

Traditional finance theory which assumes that all the individuals are rational, remains incapable of describing the preference of the investors between the risk and return. As a consequence of that, the concept of behavioral finance emerged. The researches conducted within this concept show that individuals display irrational manner. According to the aforementioned studies, demographic information of the investors like age, gender, educational background, average monthly income besides living environment, physiological state etc. have an impact on decisions that will be made. The aim of this study is to detect whether the individual investors who invest in the stocks of football clubs will abide by the "Effect of Schadenfreude" or not. "Schadenfreude" hails from a German dialect and has the meaning of getting pleasure of rivals' failure and gloating. In this context, the competition results of two rival, Galatasaray and Fenerbahçe football teams traded in Borsa İstanbul A. Ş. and the stock prices before and after the competition were analyzed. As a result of the analysis, it is found that there are differences between Fenerbahçe's stock returns at different situation (Fenerbahçe's stock return when Fenerbahçe and Galatasaray win or lose at the same week; Fenerbahçe's stock return when Fenerbahçe / Galatasaray win - Galatasaray / Fenerbahçe lose at the same week).