Race to Return: An Event Study of Race Performance and Share Price Reactions

Høyland, Mats Tveit; Høien, Torgrim Norland
Master thesis
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URI
https://hdl.handle.net/11250/3053917
Date
2022
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Abstract
This thesis investigates the relationship between race performance in Formula One

and the immediate stock price reaction of the companies involved. Using event study

and regression analysis, we examine the effect of race results on the abnormal

returns of eight different companies. Our results show that race performance does

not have an immediate statistically significant effect on abnormal returns. We also

find that winning the Driver's Championship and Constructor's Championship does

not lead to positive abnormal returns for companies associated with the winning

team. Our findings suggest that companies do not add immediate shareholder value

by their performance in Formula One.