In this paper, we show the relationship between the outcome of football events and stock returns, based on the thesis that sport results affect investor sentiment. We analyzed stock price performance indicators and football results by taking 25 publicly listed soccer companies into account. The most extensive database ever used (11,977 matches) was considered. It includes football results in the National Championship, National Cup, and Continental Cups in the period between the 2003-2004 and the 2014-2015 seasons. The analysis revealed the economic and significant statistical effects on stock prices irrespective of the results of the matches. This conclusion is valid for all analyzed countries and competition types. We also showed that stock market reactions are larger in some local markets than in others. Moreover, we examined the relationship between the number of goals scored and league stages effects, finding meaningful evidence of behavioral finance on investment decision-making processes.
AmirE., & LivneG. (2005). Accounting, valuation and duration of football player contracts. Journal of Business Finance & Accounting, 32(3/4), 549–586.
2.
AshtonJ. K., GerrardB., & HudsonR. (2011). Do national soccer results really impact on the stock market?Applied Economics, 43(26), 3709–3717.
3.
AudasR., DobsonS., & GoddardJ. (2002). The impact of managerial change on team performance in professional sports. Journal of Economics and Business, 54(6), 633–650.
4.
BarajasA., Fernández-JardónC., & CrolleyL. (2007). Does sports performance influence revenues and economic results in Spanish football?Munich Personal RePEc Archive Paper 3234.
5.
BellA. R., BrooksC., MatthewsD., & SutcliffeC. (2012). Over the moon or sick as a parrot? The effects of football results on a club's share price. Applied Economics, 44(26), 3435–3452.
6.
BenkraiemR., LouhichiW., & MarquesP. (2009). Market reaction to sporting results: The case of European listed football clubs. Management Decision, 47(1), 100–109.
7.
BernileG., & LyandresE. (2011). Understanding investor sentiment: The case of soccer. Financial Management, 40(2), 357–380.
8.
BerumentH., CeylanN. B., & GozpinarE. (2006). Performance of soccer on the stock market: Evidence from Turkey. The Social Science Journal, 43(A), 695–699.
9.
BerumentM. H., & CeylanN. B. (2012). Effects of soccer on stock markets: The return volatility relationship. The Social Science Journal, 49(3), 368–374.
10.
BoehmerE., MusumeciJ., & PoulsenA. (1991). Event-study methodology under conditions of event induced variance. Journal of Financial Economics, 30, 253–272.
11.
BouchetA., DoellmanT. W., TroiloM., & WalkupB. R. (2015). The impact of international football matches on primary sponsors and shareholder wealth. Journal of Sport Management, 29(2), 200–2f0.
12.
BoulierB. L., & SteklerH. O. (2003). Predicting the outcomes of National Football League games. International Journal of Forecasting, 19(2), 257–327
13.
ChangS. C, ChenS. S., ChouR. K., & LinY. H. (2012). Local sports sentiment and returns of locally headquartered stocks: A firm-level analysis. Journal of Empirical Finance, 19(3), 309–318.
14.
DobsonS., GoddardJ. A., & DobsonS. (2001). The economics of football.Cambridge University Press.
15.
EdmansA., GarciaD., & NorliO. (2007). Sports sentiment and stock returns. The Journal of Finance, 62(A), 1967-f 998.
FiordelisiF., GalloppoG., & RicciO. (2014). The effect of monetary policy interventions on interbank markets, equity indices and G-SIFIs during financial crisis. Journal of Financial Stability, 11, 49–61.
18.
FotakiM., MarkellosR. N., & ManiaM. (2009). Human resources turnover as an asset acquisition, accumulation and divesture process [Working paper]. Athens University of Economics and Business.
19.
GannonJ., EvansK., & GoddardJ. (2006). The stock market effects of the sale of live broadcasting rights for English Premiership Football. Journal of Sports Economics, 7(2), 168–186.
20.
KaplanskiG., & LevyH. (2010). Exploitable predictable irrationality: The FIFA World Cup effect on the U.S. stock market. Journal of Financial and Quantitative Analysis, 45(2), 535–553.
21.
KoningR. H. (2003). An econometric evaluation of the effect of firing a coach on team performance. Applied Economics, 35(5), 555–564.
22.
KoningR. H., KoolhaasM., RenesG., & RidderG. (2003). A simulation model for football championships. European Journal of Operational Research, 148(2), 268–276.
23.
KolariJ. W., & PynnönenS. (2010). Event study testing with cross-sectional correlation of abnormal returns. Review of Financial Studies, 23, 3996–4025.
24.
MacKinlayA. C. (1997). Event studies in economics and finance. Journal of Economic Literature, 35, 13–39.
25.
MarquesA. (2002). Competitive balance in the Portuguese premier league of professional soccer. Journal of Economic Literature, 19, L83.
26.
Palacios-HuertaI. (2003). Professionals play minimax. Review of Economic Studies, 70, 395–415.
27.
PalominoF., RenneboogL., & ZhangC. (2009). Information salience, investor sentiment and stock returns: The case of British soccer betting. Journal of Corporate Finance, 15, 368–387.
28.
RenneboogL., & VanbrabantP. (2000). Share price reactions to sporty performances of soccer clubs listed on the London Stock Exchange and the AIM [Discussion paper]. Tilburg University.
29.
SchredelsekerK., & FidahicF. (2011). Stock market reactions and Formula One performance. Journal of Sport Management, 25(A), 305–313.
30.
ScholtensB., & PeenstraW. (2008) Scoring on the stock exchange? The effect of football matches on stock market returns: An event study. Applied Economics, 41(25), 3231–3237.
31.
StadtmannG. (2006). Frequent news and pure signals: The case of a publicly traded football club. Scottish Journal of Political Economy, 53(A), 485–504.
