Does stock market take into consideration football players’ injuries?

Authors

  • El Mehdi Mrhari Ibn Tofail University, Morocco
  • Mohammed Hasssouni Ibn Tofail University, Av. de L'Université, Kénitra, Morocco https://orcid.org/0009-0003-8406-7316

DOI:

https://doi.org/10.18559/ref.2023.1.476

Keywords:

economics of sports, football players, injury, stock return, event study methodology

Abstract

Injuries are a frequent risk in sports. This article analyses the repercussions of football players’ injuries on the market returns of six European clubs: Ajax, Borussia Dortmund, Manchester United, Olympique Lyonnais, Benfica and Juventus over a period of three years. The originality of this study comes from the absence of scientific articles in this field. Based on the event study methodology, the results indicate that the sensitivity of stock prices to injuries is very low. Furthermore, the results show that the date of injury is a significant variable causing the effect on returns (Borussia Dortmund). However, injury severity, player status and COVID do not influence the price share.

Downloads

Download data is not yet available.

Author Biographies

  • El Mehdi Mrhari, Ibn Tofail University, Morocco

    Ibn Tofail University, Morocco

     

  • Mohammed Hasssouni, Ibn Tofail University, Av. de L'Université, Kénitra, Morocco

    Ibn Tofail University, Av. de L'Université, Kénitra, Morocco

References

Aglietta, M., Andreff, W., & Drut, B. (2008). Bourse et football. Revue d’économie politique, 118(2), 255–296.
View in Google Scholar DOI: https://doi.org/10.3917/redp.182.0255

Allouche, J., & Soulez, S. (2008). Determinants of share price variations of listed football clubs: Empirical evidence from English football leagues. Post-Print, hal-01075264, HAL.
View in Google Scholar

Ball, R., & Brown, P. (1968). An empirical evaluation of accounting income numbers. Journal of Accounting Research, 6(2), 159–178.
View in Google Scholar DOI: https://doi.org/10.2307/2490232

Bedir, F., Bozma, G., Turan, M., & Mızrak, O. (2022). Effects of COVID-19 on football stock market’s return and uncertainty. International Journal of Sport Finance, 17(3) , 140–153.
View in Google Scholar DOI: https://doi.org/10.32731/IJSF/173.082022.02

Bell, A. R., Brooks, C., Matthews, D., & Sutcliffe, C. (2012). Over the moon or sick as a par¬rot? The effects of football results on a club’s share price. Applied Economics, 44(26), 3435–3452.
View in Google Scholar DOI: https://doi.org/10.1080/00036846.2011.577017

Benkraiem, R., Le Roy, F., & Louhichi, W. (2012). Football et bourse: Analyse de la volatilité autour des annonces de résultats. Recherches en Sciences de Gestion, 91(4), 83–106.
View in Google Scholar DOI: https://doi.org/10.3917/resg.091.0083

Boya, C., & Monino, J.-L. (2011). La coloration de l’information dans l’efficience semi forte: Innovations, 36(3), 147–157.
View in Google Scholar DOI: https://doi.org/10.3917/inno.036.0147

Callejo, M. B., & Forcadell, F. J. (2006). Real Madrid football club: A new model of business organization for sports clubs in Spain. Global Business and Organizational Excellence, 26(1), 51–64.
View in Google Scholar DOI: https://doi.org/10.1002/joe.20121

Chadwick, S., & Thwaites, D. (2005). Managing sport sponsorship programs: Lessons from a Critical Assessment of English Soccer. Journal of Advertising Research, 45(3), 328–338.
View in Google Scholar DOI: https://doi.org/10.1017/S0021849905050312

Croxson, K., & James Reade, J. (2014). Information and efficiency: Goal arrival in soccer betting. The Economic Journal, 124(575), 62–91.
View in Google Scholar DOI: https://doi.org/10.1111/ecoj.12033

Dauty, M., & Collon, S. (2011). Incidence of injuries in French professional soccer players. International Journal of Sports Medicine, 32(12), 965–969.
View in Google Scholar DOI: https://doi.org/10.1055/s-0031-1283188

Davies, B., Downward, P., & Jackson, I. (1995). The demand for rugby league: Evidence from causality tests. Applied Economics, 27(10), 1003–1007.
View in Google Scholar DOI: https://doi.org/10.1080/00036849500000081

Fama, E. F. (1970). Efficient capital markets: A review of theory and empirical work. The Journal of Finance, 25(2), 383–417.
View in Google Scholar DOI: https://doi.org/10.1111/j.1540-6261.1970.tb00518.x

Ferreira, P., Loures, L., Nunes, J. R., & Dionísio, A. (2017). The behaviour of share returns of football clubs: An econophysics approach. Physica A: Statistical Mechanics and Its Applications, 472, 136–144.
View in Google Scholar DOI: https://doi.org/10.1016/j.physa.2017.01.022

Floros, C. (2014). Football and stock returns: New evidence. Procedia Economics and Finance, 14, 201–209.
View in Google Scholar DOI: https://doi.org/10.1016/S2212-5671(14)00703-5

Fotaki, M., Kourtis, A., & Markellos, R. (2023). Human resources turnover as an asset ac¬quisition and divestiture process: Evidence from the U.K. football industry. International Journal of Finance & Economics, 28, 2696–2711.
View in Google Scholar DOI: https://doi.org/10.1002/ijfe.2558

Frick, B., & Simmons, R. (2008). The impact of managerial quality on organizational per¬formance: Evidence from German soccer. Managerial and Decision Economics, 29(7), 593–600.
View in Google Scholar DOI: https://doi.org/10.1002/mde.1431

Garcia-del-Barrio, P., & Pujol, F. (2007). Hidden monopsony rents in winner-take-all markets – Sport and economic contribution of Spanish soccer players. Managerial and Decision Economics, 28(1), 57–70.
View in Google Scholar DOI: https://doi.org/10.1002/mde.1313

Gimet, C., & Montchaud, S. (2016). What drives European football clubs’ stock returns and volatility? International Journal of the Economics of Business, 23(3), 351–390.
View in Google Scholar DOI: https://doi.org/10.1080/13571516.2016.1204686

Hägglund, M., Waldén, M., Magnusson, H., Kristenson, K., Bengtsson, H., & Ekstrand, J. (2013). Injuries affect team performance negatively in professional football: An 11-year follow-up of the UEFA Champions League injury study. British Journal of Sports Medicine, 47(12), 738–742.
View in Google Scholar DOI: https://doi.org/10.1136/bjsports-2013-092215

Herm, S., Callsen-Bracker, H.-M., & Kreis, H. (2014). When the crowd evaluates soccer players’ market values: Accuracy and evaluation attributes of an online community. Sport Management Review, 17(4), 484–492.
View in Google Scholar DOI: https://doi.org/10.1016/j.smr.2013.12.006

Kaplanski, G., & Levy, H. (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.
View in Google Scholar DOI: https://doi.org/10.1017/S0022109010000153

Morrow, S. (1999). Accounting in the football industry. In: S. Morrow (Ed.), The new busi¬ness of football: Accountability and finance in football (pp. 121–156). Palgrave Macmillan UK.
View in Google Scholar DOI: https://doi.org/10.1057/9780230371743_5

Palomino, F., Renneboog, L., & Zhang, C. (2009). Information salience, investor sentiment, and stock returns: The case of British soccer betting. Journal of Corporate Finance, 15(3), 368–387.
View in Google Scholar DOI: https://doi.org/10.1016/j.jcorpfin.2008.12.001

Pfirrmann, D., Herbst, M., Ingelfinger, P., Simon, P., & Tug, S. (2016). Analysis of injury inci¬dences in male professional adult and elite youth soccer players: A systematic review. Journal of Athletic Training, 51(5), 410–424.
View in Google Scholar DOI: https://doi.org/10.4085/1062-6050-51.6.03

Prigge, S., & Tegtmeier, L. (2019). Market valuation and risk profile of listed European foot¬ball clubs. Sport, Business and Management: An International Journal, 9(2), 146–163.
View in Google Scholar DOI: https://doi.org/10.1108/SBM-04-2018-0033

Ross, A. G., McKay, M. J., Pappas, E., Fortington, L., & Peek, K. (2022). Direct and indirect costs associated with injury in sub-elite football in Australia: A population study us¬ing 3 years of sport insurance records. Journal of Science and Medicine in Sport, 25(9), 743–749.
View in Google Scholar DOI: https://doi.org/10.1016/j.jsams.2022.06.005

Ryan, J. L., Pracht, E. E., & Orban, B. L. (2019). Inpatient and emergency department costs from sports injuries among youth aged 5–18 years. BMJ Open Sport & Exercise Medicine, 5(1), 1–7.
View in Google Scholar DOI: https://doi.org/10.1136/bmjsem-2018-000491

Sarlis, V., Chatziilias, V., Tjortjis, C., & Mandalidis, D. (2021). A data science approach ana¬lysing the impact of injuries on basketball player and team performance. Information Systems, 99, 1–16.
View in Google Scholar DOI: https://doi.org/10.1016/j.is.2021.101750

Simon, H. A. (1978). Rationality as process and as product of thought. The American Economic Review, 68(2), 1–16.
View in Google Scholar

Tunaru, R., Clark, E., & Viney, H. (2005). An option pricing framework for valuation of foot¬ball players. Review of Financial Economics, 14(3), 281–295.
View in Google Scholar DOI: https://doi.org/10.1016/j.rfe.2004.11.002

Vrooman, J. (2007). Theory of the beautiful game: The unification of European football. Scottish Journal of Political Economy, 54(3), 314–354.
View in Google Scholar DOI: https://doi.org/10.1111/j.1467-9485.2007.00418.x

Yahoo Finance – Stock Market Live, Quotes, Business & Finance News.
View in Google Scholar

Downloads

Published

2023-10-10

Issue

Vol. 7 No. 1 (2023)

Section

Articles

License

Copyright (c) 2023 El Mehdi Mrhari, Mohammed Hasssouni

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Mrhari, E. M., & Hasssouni, M. (2023). Does stock market take into consideration football players’ injuries?. Research Papers in Economics and Finance, 7(1), 89-100. https://doi.org/10.18559/ref.2023.1.476

Similar Articles

1-10 of 109

You may also start an advanced similarity search for this article.