Sporting, financial and stock market performance in English football: an empirical analysis of structural relationships
This paper uses structural equation modeling to examine the linkages between financial performance, sporting performance and stock market performance for English football clubs over the period from 1995 to 2007. The results indicate that there is a strong correlation between financial and sporting latent constructs. Additionally, the study indicates that the sports managers seek to achieve a minimum level of profit and maximize sporting performance. This situation remains even when the club is owned by a group of investors. On the other hand, the confirmatory factor analysis and regression analysis show that financial and sporting factor scores are statistically correlated with stock returns, but not with risk.
|Date of creation:||Nov 2009|
|Date of revision:|
|Contact details of provider:|| Postal: na Rua do Quelha 6, 1200-781 Lisboa|
Web page: http://cemapre.iseg.utl.pt/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Szymanski, Stefan, 2001. "Income Inequality, Competitive Balance and the Attractiveness of Team Sports: Some Evidence and a Natural Experiment from English Soccer," Economic Journal, Royal Economic Society, vol. 111(469), pages F69-84, February.
- Thomas Hoehn & Stefan Szymanski, 1999. "The Americanization of European football," Economic Policy, CEPR;CES;MSH, vol. 14(28), pages 203-240, 04.
- Markus Kern & Bernd Süssmuth, 2005. "Managerial Efficiency in German Top League Soccer: An Econometric Analysis of Club Performances On and Off the Pitch," German Economic Review, Verein für Socialpolitik, vol. 6(4), pages 485-506, November.
- Fama, Eugene F, et al, 1969. "The Adjustment of Stock Prices to New Information," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 10(1), pages 1-21, February.
- S. M. Dobson & J. A. Goddard, 1998. "Performance and revenue in professional league football: evidence from Granger causality tests," Applied Economics, Taylor & Francis Journals, vol. 30(12), pages 1641-1651.
- Stefan Kesenne, 2007. "The Peculiar International Economics Of Professional Football In Europe," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(3), pages 388-399, 07.
- Bruinshoofd, Allard & ter Weel, Bas, 2003.
"Manager to go? Performance dips reconsidered with evidence from Dutch football,"
European Journal of Operational Research,
Elsevier, vol. 148(2), pages 233-246, July.
- Bruinshoofd,Allard & Weel,Bas,ter, 2001. "Manager to go? Performance dips reconsidered with evidence from Dutch football," Research Memorandum 018, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- D Forrest & R Simmons & B Buraimo, 2005.
"Freedom of entry, market size and competitive outcome: evidence from English soccer,"
567322, Lancaster University Management School, Economics Department.
- Babatunde Buraimo & David Forrest & Robert Simmons, 2007. "Freedom of Entry, Market Size, and Competitive Outcome: Evidence from English Soccer," Southern Economic Journal, Southern Economic Association, vol. 74(1), pages 204-213, July.
- Vrooman, John, 2000. "The Economics of American Sports Leagues," Scottish Journal of Political Economy, Scottish Economic Society, vol. 47(4), pages 364-98, September.
- Alex Edmans & Diego García & Øyvind Norli, 2007. "Sports Sentiment and Stock Returns," Journal of Finance, American Finance Association, vol. 62(4), pages 1967-1998, 08.
- Stephen Dobson & John Goddard, 2004. "Revenue Divergence And Competitive Balance In A Divisional Sports League," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(3), pages 359-376, 08.
- Peter Dawson & Stephen Dobson, 2002. "Managerial efficiency and human capital: an application to English association football," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 23(8), pages 471-486.
- Sloane, Peter J, 1971. "The Economics of Professional Football: The Football Club as a Utility Maximiser," Scottish Journal of Political Economy, Scottish Economic Society, vol. 18(2), pages 121-46, June.
- Lawrence Hadley & Marc Poitras & John Ruggiero & Scott Knowles, 2000. "Performance evaluation of National Football League teams," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 21(2), pages 63-70.
- Pritamani, Mahesh & Singal, Vijay, 2001. "Return predictability following large price changes and information releases," Journal of Banking & Finance, Elsevier, vol. 25(4), pages 631-656, April.
- Richard Zuber & Patrick Yiu & Reinhold Lamb & John Gandar, 2005. "Investor-fans? An examination of the performance of publicly traded English Premier League teams," Applied Financial Economics, Taylor & Francis Journals, vol. 15(5), pages 305-313.
- Bill Gerrard & Steve Dobson, 2000. "Testing for monopoly rents in the market for playing talent – Evidence from English professional football," Journal of Economic Studies, Emerald Group Publishing, vol. 27(3), pages 142-164, September.
- Dieter J. Haas, 2003. "Productive efficiency of English football teams-a data envelopment analysis approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(5), pages 403-410.
- R. H. Koning, 2003. "An econometric evaluation of the effect of firing a coach on team performance," Applied Economics, Taylor & Francis Journals, vol. 35(5), pages 555-564.
- Ron De Heij & Patrick Vermeulen & Linda Teunter, 2006. "Strategic actions in European soccer: Do they matter?," The Service Industries Journal, Taylor & Francis Journals, vol. 26(6), pages 615-632, September.
- Fiona Carmichael & Dennis Thomas & Robert Ward, 2000. "Team performance: the case of English Premiership football," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 21(1), pages 31-45.
- Carlos Pestana Barros & Stephanie Leach, 2006. "Performance evaluation of the English Premier Football League with data envelopment analysis," Applied Economics, Taylor & Francis Journals, vol. 38(12), pages 1449-1458.
- Audas, Rick & Dobson, Stephen & Goddard, John, 2002. "The impact of managerial change on team performance in professional sports," Journal of Economics and Business, Elsevier, vol. 54(6), pages 633-650.
- Matt Pinnuck & Brad Potter, 2006. "Impact of on-field football success on the off-field financial performance of AFL football clubs," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 46(3), pages 499-517.
When requesting a correction, please mention this item's handle: RePEc:cma:wpaper:0906. 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: (Helena Lima)
If references are entirely missing, you can add them using this form.