Modelling of football companies' rates of return according to sport results and bookmakers' expectations on the example of serie A

• Authors: Sebastian Majewski
• Languages of publication: EN

Abstracts

EN

The main goal of this article is to investigate whether the rates of return on listed companies - football clubs can affect their athletic performance or bookmakers' market expectations. For this purpose 2001-2014 stock prices were collected of three companies - AS Roma, Juventus and SS Lazio - listed on the Milan Stock Exchange as well as their betting odds from the website www.betexplorer.com. The assumption that there are relationships between financial factors and results of sport events or bookmakers’ expectation was posed after the study of the world literature in this field.

Keywords

EN

Economics of sport, football, stock exchange, betting odds, GARCH

• Publisher: Prague Development Center, Czech Republic
• Journal: Business and Economic Horizons
• Year: 2014
• Volume: 10
• Issue: 3
• Pages: 214-222

Dates

published

2014-10-29

Contributors

author

Sebastian Majewski

References

• Ayton P., 1997. "How to Be Incoherent and Seductive: Bookmakers' Odds and Support Theory", Organizational Behavior and Human Decision Processes, Vol. 72, No.1, October, pp.99-115, http://dx.doi.org/10.1006/obhd.1997.2732
• Baroncelli A., Caruso R., 2011. "The organization and economics of Italian Serie A: a brief of overall view", Rivista di diritto ed economia dello sport, Vol. VII, Fasc. 2, pp.67-85
• Berument M.H., Ceylan B., Ogut-Eker G., 2009. "Soccer, stock returns and fanaticism: Evidence form Turkey", The Social Science Journal Nr 46, pp.594-600, http://dx.doi.org/10.1016/j.soscij.2009.06.001
• Bollerslev T., 1986. "Generalized autoregressive conditional heteroskedasticity". Journal of Econometrics, 31, pp.307-327, http://dx.doi.org/10.1016/0304-4076(86)90063-1
• Commission of the European Communities, 2007. "White Paper on sport", Brussels, COM(2007) 391
• DeBondt W., Thaler R., 1985. "Does the stock market overreact?", Journal of Finance 40, 1985, pp.793-805, http://dx.doi.org/10.1111/j.1540-6261.1985.tb05004.x
• Deloitte, 2014. "All to play for football Money League", Sports Business Group, January
• Deloitte, 2013. "Captains of industry. Football Money League", Sports Business Group, January
• Di Domizio M., 2010. "Competitive balance and TV audience: An empirical analysis on the Italian Serie A", Department of Communication, University of Teramo, Working Paper No 64, pp.1-30
• Duque J., Ferreira N.A.A., 2005. "Explaining Share Price Performance of Football Clubs Listed on The Euronext Lisbon", Instituto Superior de Economia e Gestao, pp.1-38
• Edmans A., Garcia D., Norli O., 2007. "Sports Sentiment and Stock Returns", The Journal of Finance Vol. LXII, No.4, pp.1967-1998, http://dx.doi.org/10.1111/j.1540-6261.2007.01262.x
• Engle R., 1982. "Autoregressive conditional heteroskedasticity with estimates of the variance of UK inflation", Econometrica, 50, pp.987-1008,http://dx.doi.org/10.2307/1912773
• Jędraszka A., Zatoń M., 2011. "Giełdy zakładów sportowych jako alternatywne źródło inwestycji", Studia i Prace Kolegium Zarządzania i Finansów, Zeszyt Naukowy 106, SGH Warszawa 2011, pp.159-170
• Leitão J., da Rocha Amanda M., Ferreira J., 2012. Corruption and Co-Movements in European Listed Sport Companies: Did Calciocaos really matter?", MPRA Paper No.42474, posted 8, pp.1-19
• Majewski S., 2014. "Wpływ informacji nieekonomicznych na kształtowanie się kursów akcji spółek prowadzących działalność sportową", w: : Rynek kapitałowy wobec wyzwań dekoniunktury" pod red. A.Z. Nowaka i T. Czerwińskiej, Wydawnictwo Naukowe Uniwersytetu Warszawskiego, Warszawa, pp.164-179.
• Michie J., Oughton C., 2005. "The corporate governance of professional football clubs in England", Corporate Governance Vol. 13, Nr 4, pp.517-531, http://dx.doi.org/10.1111/j.1467-8683.2005.00446.x
• Neale W.C., 1964. "The peculiar economics of professional sports", The Quarterly Journal of Economics Nr 78(1), pp.1-14, http://dx.doi.org/10.2307/1880543
• Prabucki B., 2012. "Gry sportowe jako element wzmacniający współczesne tożsamości etniczne. Analiza na przykładzie Basków", Homo Ludens No.1(4), pp.195-208.
• Saraç M., Zeren F., 2013. "The Effect of Soccer Performance on Stock Return: Empirical Evidence From "The Big Three Clubs" of Turkish Soccer League", Journal of Applied Finance & Banking, Vol.3, No.5, pp.299-314.
• Stadtmann G., 2003. "An Empirical Examination of the News Model: The Case of Borussia Dortmund GmbH & Co. KGaA", pp.1-29
• Szymanski S., Kuper S., 2009. "Soccernomics". Nation Books, A Member of the Perseus Books Group, New York

Identifiers

DOI

http://dx.doi.org/10.15208/beh.2014.18