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The Impact of Soccer Player Transfer on Stock Prices: An Analysis on the Stoxx European Football Index

Year 2022, Volume: 23 Issue: 4, 800 - 818, 16.10.2022

Binali Selman Eren

https://doi.org/10.37880/cumuiibf.1070061
Cited By: 1

Abstract

In this study, the reaction of investors (for the stock of football clubs) to the official transfer (acquisition) agreement announcements of 14 football clubs traded in the STOXX European Football Index is analyzed. In this direction, a total of 394 soccer player transfer announcements of 14 football clubs for the 2010-2011 and 2021-2022 seasons and equal to or above 5 million Euro are included in the analysis. In the study, the reaction of investors to stocks is analyzed by event study method. In this direction, cumulative average abnormal returns (CAAR) are calculated for a total of 11 different event windows. Unlike studies in the literature, CAAR values are evaluated according to parametric and non-parametric test statistics. CAAR values are calculated on the transfer numbers and sizes for some teams in three different groups, and for some teams in one and two different groups. The results of the analysis confirm that investors have mixed (negative or positive) reactions to the transfer announcement of each football club. When the results of the analysis is generally evaluated, it is seen that the transfer of soccer players who are high (low) for all teams are higher (low) response (negative or positive) of investors to the transfer announcements of soccer players.

Keywords

Football Transfer Stoxx European Football Index Event Study

References

  • Amir, E., & Livne, G. (2005). Accounting, Valuation And Duration Of Football Player Contracts. Journal Of Business Finance & Accounting, 32(3‐4), 549-586.
  • Athanasios, D., & De Jong, F. (2013). Finance And Football: The Market Reaction To Football Player Transfers İn Europe (Doctoral Dissertation, Master Thesis, Van Tilburg University, School Of Economics And Management, Tilburg, Nederland. Http://Arno. Uvt. Nl/Show. Cgi).
  • Babacan, B., & Gökhan, Ö. (2014). Voluntary & Mandatory Transfer Disclosures Of Football Teams And Behaviour Of Stock Returns: An Event Study. International Review Of Economics And Management, 2(1), 19-35.
  • Bell, A., Brooks, C., & Markham, T. (2013). Does Managerial Turnover Affect Football Club Share Prices?. Aestimatio, The Ieb International Journal Of Finance, 7, 02-21.
  • Benninga, S. (2014). Financial Modeling. MIT press.
  • Boido, C. And Fasano, A. 2007. Football And Mood İn Italian Stock Exchange, The Icfai University Journal Of Behavioral Finance 4, P. 32-50.
  • Buchholz, F., & Lopatta, K. (2017). Stakeholder salience of economic investors on professional football clubs in Europe. European Sport Management Quarterly, 17(4), 506-530.
  • Campbell, C. J., Cowan, A. R., & Salotti, V. (2010). Multi-Country Event-Study Methods. Journal of Banking & Finance, 34(12), 3078-3090.
  • Corrado, C. 1989. A non parametric test for abnormal security price performance in Event Studies. Journal of Financial Economics, 23(2): 385-395.
  • Corrado, C. J., & Zivney, T. L. (1992). The Specification And Power Of The Sign Test İn Event Study Hypothesis Tests Using Daily Stock Returns. Journal Of Financial And Quantitative Analysis, 27(3), 465-478.
  • Dayi, F., Ibrahim Yasar, G. O. K., & Ulusoy, T. (2018, July). The Relationship Between Footballer And Head Coach Transfer News And Stock Prices Of Sport Clubs. In Proceedings Of International Academic Conferences (No. 8209526). International Institute Of Social And Economic Sciences.
  • De Bakker, D. (2016). The Effect Of Player Transfers On Stock Prices. An Event Study On European Listed Football Clubs. Tilburg University Department Of Finance.
  • Dobson, S. And Goddard, J. 2011. "The Economics Of Football", Cambridge University Press, Cambridge.
  • Doğan, M., Kevser, M., & Sarıgül, S. S. (2021). Analysıs Of The Relatıonshıp Between Notıfıcatıons Of Football Clubs And Stock Returns Usıng Event Study Method. Sosyal Ekonomik Araştırmalar Dergisi, 21(1), 67-76.
  • Dyckman, T., D. Philbrick, J. Stephan (1984), A Comparison of Event Study Methodologies Using Daily Stock Returns: A Simulation Approach, Journal of Accounting Research, 22, 1–30.
  • Fama, E. F. (1970). Efficient Capital Markets: A Review of Theory and Empirical Work. The Journal of Finance, 25(2), 383-417.
  • Fama, E. F. (1991). Efficient Capital Markets: II. The journal of Finance, 46(5), 1575- 1617.
  • FIFA. (2021). Associations And Confederations. Retrieved From: Https://Www.Fifa.Com/Associations/
  • Fotaki, M., Markellos, R., & Mania, M. (2007). The Effect Of Human Resource Turnover On Shareholder Wealth: Evidence From The Uk Football Industry.
  • Fűrész, D. I., & Rappai, G. (2020). Information Leakage İn The Football Transfer Market. European Sport Management Quarterly, 1-21.
  • Kılıç, Y. (2020), “Borsa İstanbul’da Covıd-19 (Koronavirüs) Etkisi”, Journal Of Emerging Economies And Policy, 5(1), 66-77.
  • Kolari, J. W., & Pynnonen, S. (2011). Nonparametric Rank Tests For Event Studies. Journal Of Empirical Finance, 18(5), 953-971.
  • Konchitchki, Y., & O'Leary, D. E. (2011). Event Study Methodologies in Information Systems Research. International Journal of Accounting Information Systems, 12(2), 99-115.
  • MacKinlay, A. C. (1997). Event studies in economics and finance. Journal of economic literature, 35(1), 13-39.
  • McWilliams, A., & Siegel, D. (1997). Event Studies in Management Research: Theoretical and Empirical Issues. Academy of Management Journal, 40(3), 626-657.
  • Saatçioğlu, C., & Çakmak, U. D. (2019). Avrupa Ve Türkiye’de Futbol Ekonomisi: Karşılaştırmalı Bir İnceleme. Sakarya İktisat Dergisi, 8(4), 331-350.
  • Sun, Y. Et Al. (2021), “The İmpact Of Covıd-19 On The Chinese Stock Market: Sentimental Or Substantial?”, Finance Research Letters, 38.
  • Turğut, M., & Yaşar, O. M. The Effect Of Foreign Player Transfers On The Stock Values Of Sports Clubs Companies Istanbul Stock Exchange. Türk Spor Bilimleri Dergisi, 3(1), 8-13.
  • Xiong, H. Et Al. (2020), “Which Firm-Specific Characteristics Affect The Market Reaction Of Chinese Listed Companies To The Covıd-19 Pandemic?”, Emerging Markets Finance And Trade, 56(10), 2231-2242.
  • Zureck, A., Reuse, S., Svoboda, M., & Frére, E. (2014). Investor Reactions To A Change İn Coach İn European Football.

Futbolcu Transferlerinin Hisse Senedi Fiyatlarına Etkisi: Stoxx Avrupa Futbol Endeksi Üzerine Bir Analiz

Year 2022, Volume: 23 Issue: 4, 800 - 818, 16.10.2022

Binali Selman Eren

https://doi.org/10.37880/cumuiibf.1070061
Cited By: 1

Abstract

Bu çalışmada STOXX Avrupa Futbol Endeksinde işlem gören 14 futbol kulübünün transfer (satın alma) duyurularına yatırımcıların (futbol kulüplerinin hisse senedi için) tepkisi analiz edilmiştir. Bu doğrultuda toplam 14 futbol kulübünün 2010-2022 yılları arasında 5 milyon Avroya eşit veya üzerinde olan toplam 394 futbolcu transfer duyurusu analize dâhil edilmiştir. Çalışmada hisse senetlerine yatırımcıların tepkisini ölçmek için olay çalışması (event study) yöntemi kullanılmıştır. Bu doğrultuda toplam 11 farklı olay penceresinde birikimli ortalama olağanüstü getiriler (CAAR) hesaplanmıştır. Literatürdeki çalışmalardan farklı olarak, CAAR değerleri parametrik ve parametrik olmayan test istatistiklerine göre değerlendirilmiştir. CAAR değerleri bazı takımlar için transfer sayılarına ve büyüklüklerine göre üç farklı grupta, bazı takımlar için bir ve iki farklı grupta hesaplanmıştır. Analiz sonuçları her futbol kulübünün transfer duyurusuna yatırımcıların karışık (negatif veya pozitif) tepkiler verdiğini doğrulamaktadır. Analiz sonuçları genel olarak değerlendirildiğinde, tüm takımlar için bonservis bedeli yüksek (düşük) olan futbolcuların transfer duyurularına yatırımcıların daha yüksek (düşük) tepki (negatif veya pozitif) verdiğini göstermektedir.

Keywords

Futbol Transfer Stoxx Avrupa Futbol Endeksi Olay Çalışması

References

  • Amir, E., & Livne, G. (2005). Accounting, Valuation And Duration Of Football Player Contracts. Journal Of Business Finance & Accounting, 32(3‐4), 549-586.
  • Athanasios, D., & De Jong, F. (2013). Finance And Football: The Market Reaction To Football Player Transfers İn Europe (Doctoral Dissertation, Master Thesis, Van Tilburg University, School Of Economics And Management, Tilburg, Nederland. Http://Arno. Uvt. Nl/Show. Cgi).
  • Babacan, B., & Gökhan, Ö. (2014). Voluntary & Mandatory Transfer Disclosures Of Football Teams And Behaviour Of Stock Returns: An Event Study. International Review Of Economics And Management, 2(1), 19-35.
  • Bell, A., Brooks, C., & Markham, T. (2013). Does Managerial Turnover Affect Football Club Share Prices?. Aestimatio, The Ieb International Journal Of Finance, 7, 02-21.
  • Benninga, S. (2014). Financial Modeling. MIT press.
  • Boido, C. And Fasano, A. 2007. Football And Mood İn Italian Stock Exchange, The Icfai University Journal Of Behavioral Finance 4, P. 32-50.
  • Buchholz, F., & Lopatta, K. (2017). Stakeholder salience of economic investors on professional football clubs in Europe. European Sport Management Quarterly, 17(4), 506-530.
  • Campbell, C. J., Cowan, A. R., & Salotti, V. (2010). Multi-Country Event-Study Methods. Journal of Banking & Finance, 34(12), 3078-3090.
  • Corrado, C. 1989. A non parametric test for abnormal security price performance in Event Studies. Journal of Financial Economics, 23(2): 385-395.
  • Corrado, C. J., & Zivney, T. L. (1992). The Specification And Power Of The Sign Test İn Event Study Hypothesis Tests Using Daily Stock Returns. Journal Of Financial And Quantitative Analysis, 27(3), 465-478.
  • Dayi, F., Ibrahim Yasar, G. O. K., & Ulusoy, T. (2018, July). The Relationship Between Footballer And Head Coach Transfer News And Stock Prices Of Sport Clubs. In Proceedings Of International Academic Conferences (No. 8209526). International Institute Of Social And Economic Sciences.
  • De Bakker, D. (2016). The Effect Of Player Transfers On Stock Prices. An Event Study On European Listed Football Clubs. Tilburg University Department Of Finance.
  • Dobson, S. And Goddard, J. 2011. "The Economics Of Football", Cambridge University Press, Cambridge.
  • Doğan, M., Kevser, M., & Sarıgül, S. S. (2021). Analysıs Of The Relatıonshıp Between Notıfıcatıons Of Football Clubs And Stock Returns Usıng Event Study Method. Sosyal Ekonomik Araştırmalar Dergisi, 21(1), 67-76.
  • Dyckman, T., D. Philbrick, J. Stephan (1984), A Comparison of Event Study Methodologies Using Daily Stock Returns: A Simulation Approach, Journal of Accounting Research, 22, 1–30.
  • Fama, E. F. (1970). Efficient Capital Markets: A Review of Theory and Empirical Work. The Journal of Finance, 25(2), 383-417.
  • Fama, E. F. (1991). Efficient Capital Markets: II. The journal of Finance, 46(5), 1575- 1617.
  • FIFA. (2021). Associations And Confederations. Retrieved From: Https://Www.Fifa.Com/Associations/
  • Fotaki, M., Markellos, R., & Mania, M. (2007). The Effect Of Human Resource Turnover On Shareholder Wealth: Evidence From The Uk Football Industry.
  • Fűrész, D. I., & Rappai, G. (2020). Information Leakage İn The Football Transfer Market. European Sport Management Quarterly, 1-21.
  • Kılıç, Y. (2020), “Borsa İstanbul’da Covıd-19 (Koronavirüs) Etkisi”, Journal Of Emerging Economies And Policy, 5(1), 66-77.
  • Kolari, J. W., & Pynnonen, S. (2011). Nonparametric Rank Tests For Event Studies. Journal Of Empirical Finance, 18(5), 953-971.
  • Konchitchki, Y., & O'Leary, D. E. (2011). Event Study Methodologies in Information Systems Research. International Journal of Accounting Information Systems, 12(2), 99-115.
  • MacKinlay, A. C. (1997). Event studies in economics and finance. Journal of economic literature, 35(1), 13-39.
  • McWilliams, A., & Siegel, D. (1997). Event Studies in Management Research: Theoretical and Empirical Issues. Academy of Management Journal, 40(3), 626-657.
  • Saatçioğlu, C., & Çakmak, U. D. (2019). Avrupa Ve Türkiye’de Futbol Ekonomisi: Karşılaştırmalı Bir İnceleme. Sakarya İktisat Dergisi, 8(4), 331-350.
  • Sun, Y. Et Al. (2021), “The İmpact Of Covıd-19 On The Chinese Stock Market: Sentimental Or Substantial?”, Finance Research Letters, 38.
  • Turğut, M., & Yaşar, O. M. The Effect Of Foreign Player Transfers On The Stock Values Of Sports Clubs Companies Istanbul Stock Exchange. Türk Spor Bilimleri Dergisi, 3(1), 8-13.
  • Xiong, H. Et Al. (2020), “Which Firm-Specific Characteristics Affect The Market Reaction Of Chinese Listed Companies To The Covıd-19 Pandemic?”, Emerging Markets Finance And Trade, 56(10), 2231-2242.
  • Zureck, A., Reuse, S., Svoboda, M., & Frére, E. (2014). Investor Reactions To A Change İn Coach İn European Football.
There are 30 citations in total.

Details

Primary Language Turkish
Subjects Finance, Business Administration
Journal Section Makaleler
Authors

Binali Selman Eren 0000-0001-5136-6406

Early Pub Date October 11, 2022
Publication Date October 16, 2022
Submission Date February 8, 2022
Published in Issue Year 2022Volume: 23 Issue: 4

Cite

APA Eren, B. S. (2022). Futbolcu Transferlerinin Hisse Senedi Fiyatlarına Etkisi: Stoxx Avrupa Futbol Endeksi Üzerine Bir Analiz. Cumhuriyet Üniversitesi İktisadi Ve İdari Bilimler Dergisi, 23(4), 800-818. https://doi.org/10.37880/cumuiibf.1070061

Cited By

“Transfer Çalımı” Niteliğindeki Futbolcu Transferlerinin Hisse Senedi Fiyatlarına Etkisi: Türkiye Süper Ligi 2022-2023 Sezonu
Hitit Sosyal Bilimler Dergisi
https://doi.org/10.17218/hititsbd.1391436
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