Research On The Impact Of Major E-sport Competition On The Stock Price Of E-sport Concept Stocks

Behavioral finance is a new discipline which combines cognitive science and psychology with financial market practice.Its core conclusion is that investor sentiment can affect stock market returns,so investor sentiment has always been the focus of behavioral finance research.As an emerging capital market,China also shows certain particularity.The irrational investment behavior of investors has become normal.The impact of investor sentiment on the capital market is becoming more and more obvious.In addition,as a new industry,with the improvement of national policies and the support of local governments in recent years,E-sports has gradually entered the mainstream as a hot new topic and become a new darling of capital pursuit.The concept stock of E-sports has also emerged as the times require.With the development of E-sports industry,E-sports events have tended to be perfect,forming a series of influential international e-sports events.Therefore,it is worth studying whether the holding of major electric competition events will affect investor sentiment,and then affect investment decisions,resulting in fluctuations in the price of competitive concept stocks.Under this background,this paper learns and draws lessons from the research ideas of domestic and foreign scholars in the field of investor sentiment.Firstly,it selects the top four competitions with the number of tournaments,and based on these four competitions,it chooses the large-scale international competitions with the participation of China's representative teams in recent years as the emotional variables.Secondly,it chooses 25 listed companies with strong correlation of theconcept of electronic competition.As a target concept stock,by means of event study method,this paper uses Fama-French three-factor model to regression analysis the return of listed companies,calculates the normal return rate and abnormal return rate,and finally carries on the significance test to the abnormal return rate and obtains the results.Empirical research is divided into two parts.The first part is to explore whether the overall electric competition event will affect the price of competitive conceptual stocks.Here,a series of competitions(including finalists,group competitions,elimination competitions)are regarded as a whole,with 20 groups of independent competitions.With the help of three-factor model,we use the pre-competition stock price data to fit and calculate the abnormal returns during the event period and the test period,and then compare the differences.The second part further divides the whole event into 37 independent stages,explores how the results of staged events affect the stock price of competitive concept stocks,fits the pre-competition stock price data and calculates the abnormal return after the game,and then divides the event into "winning combination" and "losing combination".Grouping to explore the specific impact of the results of the competition on the price of competitive concept stocks.The results show that when the competition is analyzed as a whole,the average holding of each event will have a significant impact on the profitability of nearly 40% of the e-sports concept stocks,and the higher the correlation between the target concept stocks and the e-sports,the more significant events occur.The results show that the significance of abnormal returns is related to the importance of the event,the correlation between the target concept stocks and the electronic competition,and there is also a significant relationship between the winning or losing of the results of the competition and the positive or negative abnormal returns.At present,the competitive industry has entered the fast lane of development.In the future,the number of marketable securities related to the competitive market will gradually increase.It is necessary and urgent to study the competitive concept stocks.