What Drives European Football Clubs' Stock Returns and Volatility?. Issue 3 (1st September 2016)

• Record Type: Journal Article
• Authors: Gimet, Celine; Montchaud, Sandra
• Is Part Of: International journal of the economics of business. Volume 23:Issue 3(2016)
• Page Start: 351
• Page End: 390
• Publication Date: 2016-09-01
• Subjects: European Football Clubs -- Stock Markets -- Returns -- Volatility -- Determinants; G12 -- G32 -- M10 -- M40; Economics -- Periodicals; Business -- Periodicals; 338.5024658
• DOI: 10.1080/13571516.2016.1204686
• Languages: English
• ISSNs: 1357-1516

Abstract

Abstract: The article studies the main determinants of European football clubs' stock returns and volatility. A panel-data analysis of a sample of 24 European football clubs was conducted to test the influence of several variables, based on a matrix of internal/external and real/financial dimensions, on both stock returns and their volatility. The results show that clubs' stock returns are influenced by the real and financial context and by a set of internal variables such as profit considered as a reflection of accounting discipline, capitalization as an indicator of size and stadium attendance as a proxy indicator of reputation. The volatility of stock returns seems particularly vulnerable to the overall instability on stock markets and dependent on clubs' profit and net players' transfers and, to a lesser extent, on sporting outcomes.