Football and Stock Market Performance Correlation: Evidence From Italy

Boțoc, Claudiu; Mihancea, Eugen; Molcuţ, Alin

doi:10.47743/saeb-2019-0044

Cited by 4 publications

(5 citation statements)

References 34 publications

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“…Another major contribution of this work is the important connection it establishes between financial and sporting success, since financial success is affected by domestic or international success on the pitch (Rohde & Breuer, 2016. In addition, the share price value reacts to victories and defeats Bernile & Lyandres 2011;Botoc et al, 2019). It has also been observed that the higher the investment and or/salary expenditure on players, the better the sporting results (Barajas & Rodríguez, 2010;Dimitropoulos & Koumanakos, 2015;Hammerschmidt et al, 2019;Mnzava, 2013;Szymanski, 2017).…”

Section: Discussionmentioning

confidence: 95%

“…Meanwhile, the return to wins, while positive, is close to zero. In other words, losing predicts a club's share price value in the negative better than winning in the positive Bernile & Lyandres, 2011;Botoc et al, 2019;Gimet & Montchaud, 2016). The majority of publicly listed European clubs have overvalued shares, which is explained by the fact that the behaviour of investors in the football industry is more irrational, which makes this type of investment attractive for strategic investors, sponsors, and fans, but not for purely financial investors (Prigge & Tegtmeier, 2019).…”

Section: Share Pricesmentioning

confidence: 99%

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European football clubs and their finances. A systematic literature review

Calahorro-López,

Ratkai

2024

Rev. contab.

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The purpose of this systematic literature review is to provide the state of the art, trends and thematic features in the field of accounting and finances of football teams applying the PRISMA guidelines. Seventy-five studies published after the Bosman Act (1995) were included from the most relevant databases: WoS and Scopus. The lines of research included in the analysis were financial performance, sport performance and legislative performance. The synthesis of studies revealed that the scientific output has evolved over time and changes have been detected both on a sporting and scientific level with the introduction of the Financial Fair Play (2012), which is changing the business model of the football industry towards more efficient financial and accounting decision making, which might help the achievement of sporting objectives. Useful policy conclusions such as valuation of intangibles, influence of results on clubs' share prices and directions for future research on football finance are also included in the paper. El objetivo de esta revisión bibliográfica sistemática es proporcionar el estado de la cuestión, las tendencias y las características temáticas en el campo de la contabilidad y las finanzas de los equipos de fútbol aplicando las directrices PRISMA. Se incluyeron 75 estudios publicados después de la Ley Bosman (1995) procedentes de las bases de datos más relevantes: WoS y Scopus. Las líneas de investigación incluidas en el análisis fueron el rendimiento financiero, el rendimiento deportivo y el rendimiento legislativo. La síntesis de los estudios reveló que la producción científica ha evolucionado con el tiempo y se han detectado cambios tanto a nivel deportivo como científico con la introducción del Fair Play Financiero (2012), que está cambiando el modelo de negocio de la industria del fútbol hacia una toma de decisiones financieras y contables más eficientes, lo que podría ayudar a la consecución de los objetivos deportivos. También se incluyen en el trabajo conclusiones útiles como la valoración de intangibles, la influencia de los resultados en el precio de las acciones de los clubes y orientaciones para futuras investigaciones sobre las finanzas del fútbol.

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Section: Discussionmentioning

confidence: 95%

Section: Share Pricesmentioning

confidence: 99%

European football clubs and their finances. A systematic literature review

Calahorro-López,

Ratkai

2024

Rev. contab.

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“…More precisely, in contrast to normal business, the sports business, and particularly the football industry, is highly linked to the loyalty and tradition of its local community and fans, at the same time as it is extensively complex due to both the hierarchy and the network of business partners and stakeholders within a specific sector (Razeto, 2021). Boțoc et al (2019) show that an emerging area in applied economics is the economics of sports, given the increase in global revenues. Currently, retransmission revenues, ticket sales, sponsorship, merchandising and marketing revenues, player transfers and prize money from competitions constitute the revenue flows of football clubs.…”

Section: Why Football?mentioning

confidence: 99%

“…Others are interested in another specific national league, like Turkish clubs (Demir & Danis, 2011;Saraç & Zeren, 2013), German clubs (Stadtmann, 2006), Italian clubs (Boidoa & Fasanob, 2007;Boțoc et al, 2019), Portuguese clubs (Duque & Ferreira, 2005) and a set of European clubs (Baur & McKeating, 2011;Benkraiem et al, 2009;Bernille & Lyandres, 2011;Scholtens & Peenstra, 2009).…”

Section: Literature Reviewmentioning

confidence: 99%

“…The existing literature has mainly focused on researching football clubs on the stock market in British clubs (Allouche & Soulez, 2005; Benkraiem et al, 2011; Fotaki et al, 2009; Gannon et al, 2006; Renneboog & Vanbrabant, 2000; Samaiogo, Aglietta et al, 2008). Others are interested in another specific national league, like Turkish clubs (Demir & Danis, 2011; Saraç & Zeren, 2013), German clubs (Stadtmann, 2006), Italian clubs (Boidoa & Fasanob, 2007; Boțoc et al, 2019), Portuguese clubs (Duque & Ferreira, 2005) and a set of European clubs (Baur & McKeating, 2011; Benkraiem et al, 2009; Bernille & Lyandres, 2011; Scholtens & Peenstra, 2009).…”

Section: Literature Reviewmentioning

confidence: 99%

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Neural networks for estimating Macro Asset Pricing model in football clubs

Alaminos

Esteban

Salas

2023

Intell Sys Acc Fin Mgmt

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Summary The recent crisis caused by COVID‐19 directly affected consumption habits and the stability sof financial markets. In particular, the football industry has been hit hard by this pandemic and therefore has more volatile stock prices. Given this new scenario, further research is needed to accurately estimate the value of the shares of football clubs. In this paper, we estimate an asset pricing model in football clubs with different compositions of risk nature using non‐linear techniques of artificial neural networks. Usually, asset pricing models have been estimated with linear methods such as ordinary least squares. Our results show a precision higher than 90% for all the estimated models, which far exceeds those shown by linear methods in the previous literature. We find that the residual represents about 40% of the variance of the price‐dividend ratio. Long‐term risks follow in importance, and above all, the habit component and its behaviour in the face of changes. The importance of the residual component exists due to a low correlation between the asset price and consumer behaviour, but to a much lesser extent than that shown in previous studies. The estimation carried out with artificial neural networks, both the Deep Learning methods and especially the Quantum Neural Network, opens up new possibilities to estimate more efficiently the pricing of financial assets in the football industry.

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