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Fiscal Responsibility Strategy in Brazilian Football Clubs: A Dynamic Efficiency Analysis

Author

Listed:
  • Alexandro Barbosa

    (Universidade Federal do Rio Grande do Norte)

  • Marke Geisy da Silva Dantas

    (Universidade Federal do Rio Grande do Norte)

  • Yuri Gomes Paiva Azevedo

    (Universidade Federal do Rio Grande do Norte)

  • Victor Branco de Holanda

    (Universidade Federal do Rio Grande do Norte)

Abstract

The objective of this study is to structure an indicator of dynamic efficiency focused on fiscal responsibility strategy of Brazilian football clubs and explain the concept of efficiency by the market structure and sports performance. Our main contribution to the previous empirical literature is the utilization of an additive model for temporal series called the Dynamic Slack Based Model. We estimated the inter-temporal efficiency of 25 football clubs of a balanced panel data that span the period 2010-2014. The results showed that the dynamic efficiency of the Brazilian football clubs is, on average, 80.62%. Finally, the results shown in the explanatory model suggest that the features of market structure and sporting factors have positive and significant associations with dynamic efficiency such as the size of the club, participation in the “Libertadores” Cup, access to a higher division and relegation to a lower division.

Suggested Citation

  • Alexandro Barbosa & Marke Geisy da Silva Dantas & Yuri Gomes Paiva Azevedo & Victor Branco de Holanda, 2017. "Fiscal Responsibility Strategy in Brazilian Football Clubs: A Dynamic Efficiency Analysis," Brazilian Business Review, Fucape Business School, vol. 14(Special I), pages 45-66, January.
    • Handle: RePEc:bbz:fcpbbr:v:14:y:2017:i:specialissue:p45-66
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