The Determinants of Stock Prices of European Football Clubs: An Empirical Analysis

Giampiero Maci; Vincenzo Pacelli; Elisabetta D’Apolito

doi:doi:10.11648/j.ijefm.20200805.11

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The Determinants of Stock Prices of European Football Clubs: An Empirical Analysis

Giampiero Maci, Vincenzo Pacelli, Elisabetta D’Apolito

Published in International Journal of Economics, Finance and Management Sciences (Volume 8, Issue 5)

Received: 4 August 2020 Accepted: 17 August 2020 Published: 3 September 2020

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Abstract

This study investigates the sporting and financial performances impacts of football clubs on stock price dynamics. The sample covers all the European football companies listed on the Stock Exchange over the period 2012-2017. The stock price formation process for listed football companies is investigated through a multiple regression model in which the share price is a function of several variables of listed European football companies, because the authors analyze the impact of both sports and financial and management performance on the share prices of the companies. Panel data fixed effects estimations are employed to mitigate endogeneity concerns and to control for within-firm dynamics. It was found that on market performance: i) positively impacts of sports performance; ii) positively impacts of economic performance; iii) positively impacts of asset and revenue diversification. This topic would be of interest to international investors and will push club managers to nurture their own corporate culture, which, in many cases, is still not in keeping with the size or pace of market development. These findings have important implications for investors as well as club managers. The empirical research provides useful implications to direct club managements towards best practices that will help football clubs access capital markets. Indeed, they present an encouragement for the improvement of the competitive results and the economic-financial performances.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 8, Issue 5)
DOI	10.11648/j.ijefm.20200805.11
Page(s)	168-179
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Stock Prices, Football Clubs, Balance Sheet Indicators

References

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APA Style

Giampiero Maci, Vincenzo Pacelli, Elisabetta D’Apolito. (2020). The Determinants of Stock Prices of European Football Clubs: An Empirical Analysis. International Journal of Economics, Finance and Management Sciences, 8(5), 168-179. https://doi.org/10.11648/j.ijefm.20200805.11

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ACS Style

Giampiero Maci; Vincenzo Pacelli; Elisabetta D’Apolito. The Determinants of Stock Prices of European Football Clubs: An Empirical Analysis. Int. J. Econ. Finance Manag. Sci. 2020, 8(5), 168-179. doi: 10.11648/j.ijefm.20200805.11

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AMA Style

Giampiero Maci, Vincenzo Pacelli, Elisabetta D’Apolito. The Determinants of Stock Prices of European Football Clubs: An Empirical Analysis. Int J Econ Finance Manag Sci. 2020;8(5):168-179. doi: 10.11648/j.ijefm.20200805.11

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@article{10.11648/j.ijefm.20200805.11,
  author = {Giampiero Maci and Vincenzo Pacelli and Elisabetta D’Apolito},
  title = {The Determinants of Stock Prices of European Football Clubs: An Empirical Analysis},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {8},
  number = {5},
  pages = {168-179},
  doi = {10.11648/j.ijefm.20200805.11},
  url = {https://doi.org/10.11648/j.ijefm.20200805.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20200805.11},
  abstract = {This study investigates the sporting and financial performances impacts of football clubs on stock price dynamics. The sample covers all the European football companies listed on the Stock Exchange over the period 2012-2017. The stock price formation process for listed football companies is investigated through a multiple regression model in which the share price is a function of several variables of listed European football companies, because the authors analyze the impact of both sports and financial and management performance on the share prices of the companies. Panel data fixed effects estimations are employed to mitigate endogeneity concerns and to control for within-firm dynamics. It was found that on market performance: i) positively impacts of sports performance; ii) positively impacts of economic performance; iii) positively impacts of asset and revenue diversification. This topic would be of interest to international investors and will push club managers to nurture their own corporate culture, which, in many cases, is still not in keeping with the size or pace of market development. These findings have important implications for investors as well as club managers. The empirical research provides useful implications to direct club managements towards best practices that will help football clubs access capital markets. Indeed, they present an encouragement for the improvement of the competitive results and the economic-financial performances.},
 year = {2020}
}

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TY  - JOUR
T1  - The Determinants of Stock Prices of European Football Clubs: An Empirical Analysis
AU  - Giampiero Maci
AU  - Vincenzo Pacelli
AU  - Elisabetta D’Apolito
Y1  - 2020/09/03
PY  - 2020
N1  - https://doi.org/10.11648/j.ijefm.20200805.11
DO  - 10.11648/j.ijefm.20200805.11
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 168
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PB  - Science Publishing Group
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UR  - https://doi.org/10.11648/j.ijefm.20200805.11
AB  - This study investigates the sporting and financial performances impacts of football clubs on stock price dynamics. The sample covers all the European football companies listed on the Stock Exchange over the period 2012-2017. The stock price formation process for listed football companies is investigated through a multiple regression model in which the share price is a function of several variables of listed European football companies, because the authors analyze the impact of both sports and financial and management performance on the share prices of the companies. Panel data fixed effects estimations are employed to mitigate endogeneity concerns and to control for within-firm dynamics. It was found that on market performance: i) positively impacts of sports performance; ii) positively impacts of economic performance; iii) positively impacts of asset and revenue diversification. This topic would be of interest to international investors and will push club managers to nurture their own corporate culture, which, in many cases, is still not in keeping with the size or pace of market development. These findings have important implications for investors as well as club managers. The empirical research provides useful implications to direct club managements towards best practices that will help football clubs access capital markets. Indeed, they present an encouragement for the improvement of the competitive results and the economic-financial performances.
VL  - 8
IS  - 5
ER  -

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Author Information

Giampiero Maci

Department of Economics, University of Foggia, Foggia, Italy
Vincenzo Pacelli

Ionian Department of Law and Economics of the Mediterranean: Society, Environment, Cultures, University of Bari “Aldo Moro”, Bari, Italy
Elisabetta D’Apolito

Department of Economics, University of Foggia, Foggia, Italy

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APA Style

Giampiero Maci, Vincenzo Pacelli, Elisabetta D’Apolito. (2020). The Determinants of Stock Prices of European Football Clubs: An Empirical Analysis. International Journal of Economics, Finance and Management Sciences, 8(5), 168-179. https://doi.org/10.11648/j.ijefm.20200805.11

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ACS Style

Giampiero Maci; Vincenzo Pacelli; Elisabetta D’Apolito. The Determinants of Stock Prices of European Football Clubs: An Empirical Analysis. Int. J. Econ. Finance Manag. Sci. 2020, 8(5), 168-179. doi: 10.11648/j.ijefm.20200805.11

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AMA Style

Giampiero Maci, Vincenzo Pacelli, Elisabetta D’Apolito. The Determinants of Stock Prices of European Football Clubs: An Empirical Analysis. Int J Econ Finance Manag Sci. 2020;8(5):168-179. doi: 10.11648/j.ijefm.20200805.11

Copy | Download

@article{10.11648/j.ijefm.20200805.11,
  author = {Giampiero Maci and Vincenzo Pacelli and Elisabetta D’Apolito},
  title = {The Determinants of Stock Prices of European Football Clubs: An Empirical Analysis},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {8},
  number = {5},
  pages = {168-179},
  doi = {10.11648/j.ijefm.20200805.11},
  url = {https://doi.org/10.11648/j.ijefm.20200805.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20200805.11},
  abstract = {This study investigates the sporting and financial performances impacts of football clubs on stock price dynamics. The sample covers all the European football companies listed on the Stock Exchange over the period 2012-2017. The stock price formation process for listed football companies is investigated through a multiple regression model in which the share price is a function of several variables of listed European football companies, because the authors analyze the impact of both sports and financial and management performance on the share prices of the companies. Panel data fixed effects estimations are employed to mitigate endogeneity concerns and to control for within-firm dynamics. It was found that on market performance: i) positively impacts of sports performance; ii) positively impacts of economic performance; iii) positively impacts of asset and revenue diversification. This topic would be of interest to international investors and will push club managers to nurture their own corporate culture, which, in many cases, is still not in keeping with the size or pace of market development. These findings have important implications for investors as well as club managers. The empirical research provides useful implications to direct club managements towards best practices that will help football clubs access capital markets. Indeed, they present an encouragement for the improvement of the competitive results and the economic-financial performances.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - The Determinants of Stock Prices of European Football Clubs: An Empirical Analysis
AU  - Giampiero Maci
AU  - Vincenzo Pacelli
AU  - Elisabetta D’Apolito
Y1  - 2020/09/03
PY  - 2020
N1  - https://doi.org/10.11648/j.ijefm.20200805.11
DO  - 10.11648/j.ijefm.20200805.11
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 168
EP  - 179
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20200805.11
AB  - This study investigates the sporting and financial performances impacts of football clubs on stock price dynamics. The sample covers all the European football companies listed on the Stock Exchange over the period 2012-2017. The stock price formation process for listed football companies is investigated through a multiple regression model in which the share price is a function of several variables of listed European football companies, because the authors analyze the impact of both sports and financial and management performance on the share prices of the companies. Panel data fixed effects estimations are employed to mitigate endogeneity concerns and to control for within-firm dynamics. It was found that on market performance: i) positively impacts of sports performance; ii) positively impacts of economic performance; iii) positively impacts of asset and revenue diversification. This topic would be of interest to international investors and will push club managers to nurture their own corporate culture, which, in many cases, is still not in keeping with the size or pace of market development. These findings have important implications for investors as well as club managers. The empirical research provides useful implications to direct club managements towards best practices that will help football clubs access capital markets. Indeed, they present an encouragement for the improvement of the competitive results and the economic-financial performances.
VL  - 8
IS  - 5
ER  -

Copy | Download