Does stock market take into consideration football players’ injuries?
DOI:
https://doi.org/10.18559/ref.2023.1.476Keywords:
economics of sports, football players, injury, stock return, event study methodologyAbstract
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
References
Aglietta, M., Andreff, W., & Drut, B. (2008). Bourse et football. Revue d’économie politique, 118(2), 255–296. DOI: https://doi.org/10.3917/redp.182.0255
View in Google Scholar
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. DOI: https://doi.org/10.2307/2490232
View in Google Scholar
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. DOI: https://doi.org/10.32731/IJSF/173.082022.02
View in Google Scholar
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. DOI: https://doi.org/10.1080/00036846.2011.577017
View in Google Scholar
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. DOI: https://doi.org/10.3917/resg.091.0083
View in Google Scholar
Boya, C., & Monino, J.-L. (2011). La coloration de l’information dans l’efficience semi forte: Innovations, 36(3), 147–157. DOI: https://doi.org/10.3917/inno.036.0147
View in Google Scholar
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. DOI: https://doi.org/10.1002/joe.20121
View in Google Scholar
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. DOI: https://doi.org/10.1017/S0021849905050312
View in Google Scholar
Croxson, K., & James Reade, J. (2014). Information and efficiency: Goal arrival in soccer betting. The Economic Journal, 124(575), 62–91. DOI: https://doi.org/10.1111/ecoj.12033
View in Google Scholar
Dauty, M., & Collon, S. (2011). Incidence of injuries in French professional soccer players. International Journal of Sports Medicine, 32(12), 965–969. DOI: https://doi.org/10.1055/s-0031-1283188
View in Google Scholar
Davies, B., Downward, P., & Jackson, I. (1995). The demand for rugby league: Evidence from causality tests. Applied Economics, 27(10), 1003–1007. DOI: https://doi.org/10.1080/00036849500000081
View in Google Scholar
Fama, E. F. (1970). Efficient capital markets: A review of theory and empirical work. The Journal of Finance, 25(2), 383–417. DOI: https://doi.org/10.1111/j.1540-6261.1970.tb00518.x
View in Google Scholar
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. DOI: https://doi.org/10.1016/j.physa.2017.01.022
View in Google Scholar
Floros, C. (2014). Football and stock returns: New evidence. Procedia Economics and Finance, 14, 201–209. DOI: https://doi.org/10.1016/S2212-5671(14)00703-5
View in Google Scholar
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. DOI: https://doi.org/10.1002/ijfe.2558
View in Google Scholar
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. DOI: https://doi.org/10.1002/mde.1431
View in Google Scholar
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. DOI: https://doi.org/10.1002/mde.1313
View in Google Scholar
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. DOI: https://doi.org/10.1080/13571516.2016.1204686
View in Google Scholar
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. DOI: https://doi.org/10.1136/bjsports-2013-092215
View in Google Scholar
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. DOI: https://doi.org/10.1016/j.smr.2013.12.006
View in Google Scholar
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. DOI: https://doi.org/10.1017/S0022109010000153
View in Google Scholar
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. DOI: https://doi.org/10.1057/9780230371743_5
View in Google Scholar
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. DOI: https://doi.org/10.1016/j.jcorpfin.2008.12.001
View in Google Scholar
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. DOI: https://doi.org/10.4085/1062-6050-51.6.03
View in Google Scholar
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. DOI: https://doi.org/10.1108/SBM-04-2018-0033
View in Google Scholar
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. DOI: https://doi.org/10.1016/j.jsams.2022.06.005
View in Google Scholar
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. DOI: https://doi.org/10.1136/bmjsem-2018-000491
View in Google Scholar
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. DOI: https://doi.org/10.1016/j.is.2021.101750
View in Google Scholar
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. DOI: https://doi.org/10.1016/j.rfe.2004.11.002
View in Google Scholar
Vrooman, J. (2007). Theory of the beautiful game: The unification of European football. Scottish Journal of Political Economy, 54(3), 314–354. DOI: https://doi.org/10.1111/j.1467-9485.2007.00418.x
View in Google Scholar
Yahoo Finance – Stock Market Live, Quotes, Business & Finance News.
View in Google Scholar
Downloads
Published
Issue
Section
License
Copyright (c) 2023 El Mehdi Mrhari, Mohammed Hasssouni
This work is licensed under a Creative Commons Attribution 4.0 International License.
The Research Papers in Economics and Finance (REF) is committed to open access. All of the REF` s paper are free to access immediately from the date of publication. There are no author charges, known as APCs, before release, and no charge for any reader to download articles.
The Creative Commons Attribution 4.0 International license (CC BY 4.0) applies to articles published in Research Papers in Economics and Finance from Vol. 4, No. 3, 2020 to present. This license is acceptable for Free Cultural Works. You are free to share and adapt. You must give appropriate credit, provide a link to the license, and indicate if changes were made.
The Attribution-NonCommercial 4.0 International license (CC BY-NC 4.0) applies to articles published in Research Papers in Economics and Finance up to Vol. 4, No. 2, 2020 inclusive. You are free to share and adapt. You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may not use the material for commercial purposes.