IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v71y2024ics0275531924002897.html
   My bibliography  Save this article

The football world upside down: Traditional equities as an alternative for the new fan tokens? A portfolio optimization study

Author

Listed:
  • Esparcia, Carlos
  • Díaz, Antonio

Abstract

This study provides a comprehensive analysis of the relationship between fan tokens and equities as investment vehicles in football clubs. Using the GO-GARCH methodology to account for time-varying higher-order co-moments, we examine the risk-return characteristics of these assets in different portfolio contexts over the period November 2021-March 2023. Our results show high diversification opportunities between fan tokens and equities, especially with investments in different leagues. Portfolio analysis shows that equities generally outperform fan tokens as an investment vehicle, highlighting the importance of active portfolio management. The study also shows that equities have broader diversification potential than fan tokens when added to a portfolio. Furthermore, Turkish fan tokens have better characteristics than Italian fan tokens, possibly due to the nonfinancial benefits for investors. The results are relevant for both retail and institutional investors, regardless of their risk tolerance profiles.

Suggested Citation

  • Esparcia, Carlos & Díaz, Antonio, 2024. "The football world upside down: Traditional equities as an alternative for the new fan tokens? A portfolio optimization study," Research in International Business and Finance, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:riibaf:v:71:y:2024:i:c:s0275531924002897
    DOI: 10.1016/j.ribaf.2024.102496
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531924002897
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ribaf.2024.102496?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Fan tokens; Equities; Football; Portfolio choice; 4th-order moments;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:71:y:2024:i:c:s0275531924002897. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.