The Effects of Sporting Success on Stock Returns: An Application in Istanbul Stock Exchange

Alper Veli ÇAM

Abstract


Abstract. The purpose of this study is to analyze the effects of the match results of open joint football clubs on stock returns. Through the purpose, the results which are obtained in Turkey Super League by Fenerbahçe, Galatasaray, Beşiktaş and Trabzonspor whose stocks are dealt in Istanbul Stock Exchange (BIST) and stock returns are analyzed in this study. The related teams’ match results and beta coefficients are considered as independent variable whereas stock returns are regarded as dependent variable. The study incorporates 3-year period including 2012-2013, 2013-2014 and 2014-2015. In the conclusion of the study in which econometrical modeling is utilized, it is found out that losses have greater impacts on stock returns comparing to deuce and winning. Additionally, it is also established that all kinds of results obtained by Galatasaray club has impact on stock returns on the other hand only the losses results of Fenerbahçe and Trabzonspor have effects on stock returns.

Keywords. Stockreturns, Match results, Football industry, Stock market.

JEL. G14, C5, P45.

Full Text:


References


Ashton, J.K., Gerrard, B., & Hudson, R. (2003). Economic impact of national sporting success: Evidence from the london stock exchange. Applied Economics Letters, 10, 783-785. doi:10.1080/1350485032000126712

Bell, A. R., Brooks, C., Matthews, D., & Sutcliffe, C. (2012). Over the moon or sick as a parrot? The effects of football results on a club's share price, Applied Economics 44(26), 3435-3452. doi: 10.1080/00036846.2011.577017

Benkraiem, R., Louhichi, W., & Marques, P. (2009). Market reaction to sporting results: the case of european listed football clubs. Management Decision, 47(1), 100-109.doi: 10.1108/00251740910929722

Beyaz, Z., & Bakırtaş, İ. (2010). The effect of the football clubs performance on the stock returns. Uluslar arası Spor Araştırmaları Dergisi, 2(2), 1-16.

Brown, S. J., & Warner, J. B. (1985). Using daily stock returns; the case of event studies.Journal of Financial Economics, 34, 3-31. doi:10.1016/0304-405X(85)90042-x

Coates, D., & Humphreys, B.R. (2008). The effect of on-field success on stock prices: evidence from nippon professional baseball. International Association of Sports Economists, Working Paper Series, No: 08-05, 1-21

Edmans, A., Garcia, D., & Norli, Ø. (2007). Sports sentiment and stock returns. Journal of Finance 62, 1967–1998. doi: 10.1111/j.1540-6261.2007.01262.x

Eker, G., Berument, H., & Dogan, B. (2007). Football and exchange rates: empirical support for behavioral economics, Psychological Reports, 101, 643-654. doi: 10.2466/pr0.101.2.643-654

Fabozzi, F., & Modigliani, F. (1995). Capital markets instutions and instruments, (2nd ed.). New Jersey: Prentice Hall.

Floros, C. (2010). The ımpact of the athensolympic games on the athen stock exchange. Journal of Economic Studies, 37(6), 647-657. doi: 10.1108/01443581011086675

Kaplanski, G., & Levy, H. (2010). Exploitable predictable ırrationality: the fıfa world cup effect on the u.s. stock market. Journal of Financial and Quantitative Analysis, 45(2), 535-553. doi: 10.1017/S0022109010000153

Kaya, A., & Gülhan, Ü. (2013). The effect of sport clubs’ performances on stock prices: an application on bıst. Yönetim ve Ekonomi, 20(2), 1-20.

Okka, O. (2013). Finansal Yönetim Teori ve Çözümlü Problemler (5th ed.). Ankara: Nobel

Palomino, F., Renneboog, L., & Zhang, C. (2009). Information salience, investor sentiment and stock returns: the case of British soccer betting. Journal of Corporate Finance 15, 368–387. doi:10.1016/j.jcorpfin.2008.12.001

Parlak, D., & Bişirici, E.(2014). An analysıs on the stock market performance of two football clubs. Doğuş University Journal,,15(2), 181-192.

Scholtens, B., & Peenstra, W. (2009). Scoring on the stock exchange? The effect of football matches on stock market returns: an event study, Applied Economics 41(25), 3231-3237. doi: 10.1080/00036840701721406

Stadtmann, G. (2004). An empirical examination of the news model: the case of borussia Dortmund gmbh & co. kgaa, Zeıtschrıft fur Betrıebswırtschaft 74(2), 165-185.

Temizel F., Özata E., & Esen E. (2013). Futbol kulüplerinin sportif performansları ile hisse senedi getirileri arasındaki ilişkinin analizi: Türkiye örneği, TİSK Akademi, 1, 179-196.

Wooldridge, J. M. (2009). Introductory econometrics a modern approach.(4th ed.) USA: South-Western Cengage Learning.

Zeren, F., & Gümüş, F.B. (2013). An application on performances of the turkish and foreign football teams in their stock markets. ÇankırıKaratekin University Journal of the Faculty of Economics and Administrative Sciences, 3(2), 34-54.

Zuber, R.A., Yiu, P., Lamb, R.P. & Gandar, J.M. (2005). Investor–fans? An examination of the performance of publicly traded English Premier League teams. Applied Financial Economics, 15(5), 305-313. doi: 10.1080/0960310042000338713




DOI: http://dx.doi.org/10.1453/jel.v2i3.453

Refbacks

  • There are currently no refbacks.


.......................................................................................................................................................................................................................................................................................................................................

Journal of Economics Library - J. Econ. Lib. - JEL - www.kspjournals.org

ISSN: 2149-2379

Editor: jel@ksplibrary.org Secretarial: secretarial@ksplibrary.org   Istanbul - Turkey.

Copyright © KSP Library