Abstract
We examine the link between the corporate events of football clubs and the trend of their stock returns using a proprietary database of roughly 2000 events, based on the hypothesis that the repercussions of these occurrences affect the future decisions of investors. We study the stock price performance of 22 European football listed firms from January 2006 to April 2021. These are tied to two distinct events: (a) a coach change and (b) the acquisition of football players. Using the event study approach, we claim that investor emotion drives the stock price reaction to these specific occurrences, contributing to behavioural finance and asset allocation decisions. Our findings reveal that such events have an economic and statistically significant influence on stock prices. Even though there are country-specific peculiarities that might alter market reactions, we can maintain that there is a favourable influence of player transfers on stock performance, which is also produced by positive emotion.
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Data availability
The data that support the findings of this study are not openly available and are available from the corresponding author upon reasonable request.
Notes
As market indexes, we use the following: for Denmark – OMX Copenhagen; for England – the FTSE 100 index; for France, the CAC-40 index; for Germany – MDAX Frankfurt; for Italy – the FTSE MIB index; for the Netherlands, AEX All Share; for Portugal – the PORTUGAL PSI-20 index; for Scotland – the FTSE 100; for Sweden – the OMX Stockholm 30 index; and for Turkey – the MSCI TURKEY price index.
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Boido, C., Aliano, M. & Galloppo, G. Top-flight European football teams and stock returns: market reactions to sporting events. J Econ Finan 47, 1041–1061 (2023). https://doi.org/10.1007/s12197-023-09643-w
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DOI: https://doi.org/10.1007/s12197-023-09643-w