Impact of T20 Cricket Matches on Stock Market: An Evidence from Pakistan Cricket and KSE

Faisal Akbar; Shafqat Mehmood Khan

doi:10.64060/IJDSS.v2i1.5

Authors

Faisal Akbar Department of Management Sciences, Lahore Garrison University, Lahore, Pakistan Author https://orcid.org/0009-0007-1978-4377
Shafqat Mehmood Khan Department of Management Sciences, Lahore Garrison University, Lahore, Pakistan Author

DOI:

https://doi.org/10.64060/IJDSS.v2i1.5

Keywords:

T20 cricket, Stock market returns, Behavioural finance, Investor sentiment, KSE-100 Index, Pakistan

Abstract

This study examines whether the outcomes of Twenty20 (T20) international cricket matches played by Pakistan influence stock market performance, focusing on the Karachi Stock Exchange (KSE) 100 Index. Grounded in behavioural finance theory, the research explores the notion that investor sentiment shaped by emotionally charged national sporting events may spill over into financial decision-making. Using secondary data on Pakistan’s T20 matches and daily KSE-100 index returns covering the period from 2006 to 2024, the study applies a dummy regression methodology to capture the effects of match wins and losses on subsequent stock market returns. Match outcomes are represented through binary variables, while stock returns are computed using logarithmic daily index changes. Descriptive statistics and regression results reveal that although Pakistan’s T20 victories and defeats generate observable emotional reactions among the public, their direct impact on stock market returns is statistically insignificant. Both winning and losing coefficients are found to be positive but insignificant, leading to acceptance of the null hypothesis that T20 match results do not materially affect KSE-100 returns. The findings suggest that the short duration of the T20 format, market holidays, timing of matches, and rapid dissipation of investor emotions limit the persistence of sentiment effects on trading behaviour. This study contributes to the behavioural finance literature by extending sports–finance analysis to the T20 cricket format in Pakistan, offering insights for investors, policymakers, and researchers on the limits of non-economic sentiment in influencing emerging stock markets.

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