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.
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