Goal for gold, analyzing the impact of publicly listed football club match outcome on abnormal returns

Mohd Isa, Luqman Hakim (2020) Goal for gold, analyzing the impact of publicly listed football club match outcome on abnormal returns. [Dissertation (University of Nottingham only)]

[img] PDF - Registered users only - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Download (352kB)


This paper investigates the impact of football matches results on respective abnormal returns in the stock market. A total of 5,530 matches of eleven publicly listed European football club in seven stock exchange between 2009-2019 was analysed by applying OLS method with five different models. These clubs are separated into two group with similar structure and ranks where group 1 are football club from “big four” nations and group 2 are from smaller countries. Other components included in the models such as the match venue, type of competition (national or European), expectation (betting odds) and timeframe (2009- 2014 and 2015-2019).

Our findings indicates winning a match results in a positive abnormal return while losing a match leads to higher negative abnormal return compared to match ended in a draw. Winning a match away from home stadium leads to higher positive abnormal return for investors. Moreover, failing to win a match at home, i.e. draw or lose have higher negative abnormal return compared to away matches. We found that winning a National league match have higher positive abnormal return compared to European match, contrary with findings by Scholtens and Peenstra (2011). If a team over-delivering, where the outcome is better than expected (win instead of draw or lose, or draw instead of lose) result in higher positive abnormal return than under-delivering, where outcome is lower than expected ( losing instead of draw, draw or lose instead of win). Group 1 are less reactive in 2015-2019 as competition increases due to its ability to consistently perform on the pitch and draws high revenue. In contrast, Group 2 are more reactive due to uncertainty with the management and risks of being overtaken by other clubs. Our results are in line with Renneboog and Vanbrabant (2000), Stadtmann (2006), Benkraiem et al (2009) and Scholtens and Peenstra (2011).

Item Type: Dissertation (University of Nottingham only)
Depositing User: Mohd Isa, Luqman
Date Deposited: 27 Feb 2020 06:04
Last Modified: 06 May 2020 10:30
URI: https://eprints.nottingham.ac.uk/id/eprint/59016

Actions (Archive Staff Only)

Edit View Edit View