Determinants of European football clubs’ stock returns

• Autor(a) principal: Ferreira, João Pedro da Silva
• Data de Publicação: 2021
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10773/31198
• topic: Stock returns; Public listed football clubs; Sporting performance; Financial performance

This dissertation investigates the determinants of six European football clubs’ stock returns. An ARCH regression model was run to test several sporting variables, while simultaneously a panel-data analysis was conducted to study financial variables’ impact. The results suggest a positive (negative) and significant influence of victories (draws/defeats) on the clubs’ stock returns. We found an asymmetrical reaction of the stock market following losses and wins, with a greater magnitude being registered after the former. Additionally, more important matches tend to lead to greater impacts on stocks. Stock returns seem to react positively to improved profitability indicators, such as operating revenues, EBITDA, and net income growth. On the other side, an increment in the clubs’ total assets value leads to a decrease in stock returns.