IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Sporting Success and Capital Market Performance: An Event Study of Borussia Dortmund

Listed author(s):
  • Arne Feddersen
  • Wolfgang Maennig

This contribution examines whether the share price of the Borussia Dortmund GmbH & Co. KgaA (BVB) behaves according to the (capital) market efficiency hypothesis of Fama (1970). The weak form of capital market inefficiency, according to which past share prices cannot be used for predictions in order to achieve above-average returns, is not refuted. By contrast, the hypothesis of medium-level market efficiency, according to which all publicly available and relevant information is immediately reflected in the share prices, is rejected. Based on daily quotation of share prices, the stock market price of the BVB shares adjusts to a deviation from the long-term equilibrium by (only) 5.4% on the first day. Based on weekly calculations, the adjustment stands at 17% in the first week. The investment motives of the shareholders and the relatively low volume of trade can hardly explain the medium-level capital market inefficiency. Missing learning effects of participating actors due to the short time of notice of BVB shares could be a more fruitful explanation.

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Article provided by Duncker & Humblot, Berlin in its journal Schmollers Jahrbuch.

Volume (Year): 124 (2004)
Issue (Month): 2 ()
Pages: 282-303

in new window

Handle: RePEc:aeq:aeqsjb:v124_y2004_i2_q2_p282-303
Contact details of provider: Web page:

Order Information: Web: Email:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:aeq:aeqsjb:v124_y2004_i2_q2_p282-303. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gabriele Freudenmann)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.