Date of Award
Spring 2021
Degree Name
Bachelor of Science (BS)
Advisor(s)
Travis Petersen
Abstract
To make above average profits in a financial market, investors take advantage of abnormalities or arbitrage opportunities. These arbitrage opportunities are dependent upon whether market prices reflect all information publicly available to investors. In an efficient market, these arbitrage opportunities do not exist for long, and prices should swiftly and completely update with the release of any relevant information. Testing the efficiency of financial markets is difficult because it is almost impossible to ignore information leakage. Instead, I tested the efficiency of the soccer betting market to respond to the news of a goal, the most influential match event on the outcome of the match. Because investors can watch the soccer game live, or receive almost instant updates via social media, it is a better market to test the efficiency at which prices reflect relevant information. Unfortunately, data limitations restrict our ability to comment on the efficiency of the soccer betting market, but our research did lead to a better understanding of the market and the information available to researchers.
Recommended Citation
Fitzgerald, Griffin, "Efficiency of the Soccer Betting Market" (2021). Gabelli School of Business Honors Thesis Collection. 51.
https://research.library.fordham.edu/gabelli_thesis/51
