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Why do Goals Matter? Sport Events and Capital Market Returns

Author

Listed:
  • Aurora Murgea

    (West University from Timisoara)

  • Milena-Jana Schank

    (West University from Timisoara)

Abstract

Expected utility theory and Efficient Market Hypothesis (EMH) seem to be unable to properly explain the returns’ evolution in the stock market. The players does not act as rational as the theories assume and the prices seldom follow the EMH rules. The football clubs stock prices represent a good example for this statement since their stockholders have both rationale and emotional reasons for their investment. On the one side, they act as a regular investor who decide been driven by profit but on the other side they are usually fans of those clubs and have an emotional determinant for holding the stocks. The aim of this paper is analyses the relationship between the football matches outcomes and price returns on a time span that range during ten seasons 2006/2007 – 2015/2016), for Borussia Dortmund (Germany), AFC Ajax (Holland), Lazio (Italy) and a nine seasons time span(2007/2008 – 2015/2016) for SL Benfica (Portugal).

Suggested Citation

  • Aurora Murgea & Milena-Jana Schank, 2016. "Why do Goals Matter? Sport Events and Capital Market Returns," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 577-582, February.
    • Handle: RePEc:ovi:oviste:v:xvi:y:2016:i:2:p:577-582
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    sport; return; emotion; victories;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation

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