Does On-stage Performance of Esports Teams Impact Stock Prices: Evidence From the Astralis Group

The recent establishment and popularity of professional esports leagues, coupled with the public listing of the Denmark-based esports team Astralis Group, presents an opportunity to assess whether wins and losses impact a team`s stock price in nontraditional sports. We provide empirical evidence that wins in championship matches impact stock returns for Astralis in a regression-based event study. This suggests that investors perceive championship wins as an indicator of future earnings growth of the group.

Automated summary

The establishment and popularity of professional esports leagues, along with the public listing of Astralis Group, provide an opportunity to examine the impact of wins and losses on the stock price of nontraditional sports teams. The empirical evidence suggests that championship wins affect Astralis' stock returns, indicating that investors perceive them as indicative of future earnings growth.