How do stocks of listed football clubs react to the sportily performance of these football clubs
Because of an increasing professionalism in the football industry, football clubs became more and more like ordinary businesses. The purpose of this study is to investigate if match performance still causes abnormal returns for publicly listed football clubs. According to prior research, a positive abnormal return is expected for victories. Draws and defeats are supposed to lead to negative abnormal returns. This study covers a period ranging from 2000 till the end of 2015. The sample includes thirty European football clubs. A mix of event studies and a multiple regression model is used to investigate the relationship between match performance and share price reactions of the football clubs. In the end, it can be concluded that a victory indeed leads to a positive abnormal return (0.48% For draws and defeats, the results are in line with the existing literature, they both resulted in negative abnormal returns. Respectively 0.59% for draws and 1.02% for defeats. Table of