Market valuation and risk profile of listed European football clubs

2019 ◽  
Vol 9 (2) ◽  
pp. 146-163 ◽  
Author(s):  
Stefan Prigge ◽  
Lars Tegtmeier
Keyword(s):  
Risk Profile ◽  
Share Price ◽  
Capital Asset Pricing ◽  
Content Type ◽  
Share Prices ◽  
Asset Pricing Model ◽  
Football Clubs ◽  
Price Appreciation ◽  
European Football ◽  
Practical Implications

Purpose The purpose of this paper is to explore whether stocks in football clubs are valued in line with the valuation of other capital assets in the capital market. Moreover, it analyzes the risk profile of football stocks. By taking this perspective, the paper also contributes to the discussion on the motives of those who invest in football clubs, particularly the question of whether they expect extra benefits, i.e., in addition to dividends and share price appreciation, from the investments. Design/methodology/approach The empirical study analyzes the share prices of 19 listed European football clubs from January 2010 to December 2016. Building on the capital asset pricing model, the authors used Zellner’s (1962) seemingly unrelated regressions. Findings The results indicate that the majority of the football clubs in the sample are overvalued. This implies that investments in football stocks are mainly attractive for those investors who expect to derive extra benefits from their investment. That might be likely for strategic, patron and fan investors, but not for purely financial investors. Research limitations/implications As a next step, more advanced factor models could be applied to the analysis. Practical implications For investors, the results imply that portfolio diversification is particularly beneficial while buying football stocks. For football clubs, the rather low general market risk, combined with the overvaluation, leads to low equity costs when new shares are issued. Originality/value The results suggest that dividends and share price appreciation are not the only benefits football stock owners derive from the stocks, thus underlining that further investigations in their motives to hold football stocks are very promising.

Long gone the glory days

2014 ◽  
Vol 4 (4) ◽  
pp. 284-297 ◽  
Author(s):  
André Richelieu ◽  
Stéphanie Lessard
Keyword(s):  
Brand Identity ◽  
Analysis Method ◽  
Content Type ◽  
Know How ◽  
Brand Promise ◽  
Football Clubs ◽  
History Of ◽  
European Football ◽  
The 1960S ◽  
Practical Implications

Purpose – The purpose of this paper is to identify the catalyzing factors team managers of previously successful European football clubs could capitalize on in order to build or rebuild the brand identity of their respective team via the Europa League. Design/methodology/approach – The authors followed a case analysis method. The authors selected teams that have had a history of good performance in European competitions in the 1960s, 1970s, 1980s and early 1990s, before falling off the radar. A total of 19 teams, representing 15 countries, accepted the invitation. Findings – The managers underlined eight major catalyzing factors. The managers specifically emphasize the importance of branding and how it can crystallize the promise these teams articulate to their fans, on and off the football pitch. Moreover, the values that a team encapsulates and communicates through its daily actions seem to represent the essence of the brand. Research limitations/implications – One risk relates to the respondents who could very well know what a brand is and how a brand should be managed in theory, but it does not necessarily mean that they know how to do it at all. Practical implications – The paper highlighted the importance of shrewd management, especially when resources are scarce. A competition such as the Europa League might provide some room to maneuver but, above all, the organization must deliver the brand promise to its fans. Originality/value – This is one of the first studies looking at the leverage a European football competition could provide to previously successful clubs.

Career patterns of marketing managers in top European football clubs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Karolina Nessel
Keyword(s):  
Sports Management ◽  
Career Patterns ◽  
Content Type ◽  
Marketing Managers ◽  
Football Clubs ◽  
European Football ◽  
Main Activity ◽  
The Individual ◽  
Functional Experience ◽  
Football Industry

PurposeThe goal of this research was to explore career patterns of senior marketing managers in the best European football clubs (SMMEFCs).Design/methodology/approachThe data came from the LinkedIn profiles of current and past SMMEFCs. Firstly, the optimal matching algorithm was used to determine clusters of pathways leading to a first SMMEFC position based on the main activity of the employing organisation. Secondly, these patterns were compared in terms of variables depicting the career paths, clubs and managers. Finally, the evolution of the post-SMMEFC careers was analysed.FindingsPeople in their first SMMEFC positions are mainly male with a university degree in business and marketing, and with a predominantly functional experience in marketing. There are five ways to become an SMMEFC: through business (40% of the sample), football (32%), other sports (11%), marketing and communication (11%), and media (6%). As the majority of SMMEFCs come to their positions from outside the sporting world, the specificity of the football industry is not a serious obstacle. Instead, the careers are bounded by functional marketing experience. Among the individual sequences leading to a first SMMEFC position, only around half of the football cluster may be considered traditional careers. Football, and sports in general, seem attractive for post-SMMEFC career development for the majority of managers coming from all pathways.Originality/valueThe study is the first one to quantify career patterns in professional sports management. It provides new insights about marketing careers and practice in European club football.

Investing in change

2017 ◽  
Vol 33 (10) ◽  
pp. 7-9
Keyword(s):  
Information Sharing ◽  
Design Methodology ◽  
Reading Time ◽  
Content Type ◽  
Share Prices ◽  
The Road ◽  
Oak Trees ◽  
Bona Fide ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The Financial Times newspaper, founded in London in 1888, started life in competition with a rival financial daily, as well as its distinctive pink paper, sought to differentiate itself by being the friend of the “honest financier, the bona fide investor”. From such admirable roots do oak trees grow, and the newspaper is worth well over $1bn itself after a storied history as one of the cornerstones of business and economics. But aside from the share prices, inside gossip, and educated opinion on performance in the financial centers of the road, have you ever stopped to wonder why so many people still read it in an era of instant data and information sharing? Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

SEC releases enforcement division FY 2017 annual report: shift in tone and likely approach

2018 ◽  
Vol 19 (1) ◽  
pp. 15-19
Author(s):  
Matthew C. Solomon ◽  
Robin M. Bergen ◽  
Alexis Collins
Keyword(s):  
Asset Management ◽  
Design Methodology ◽  
Annual Report ◽  
Risk Profile ◽  
Content Type ◽  
Policies And Procedures ◽  
The Us ◽  
Retail Investors ◽  
Practical Implications ◽  
Insight Into

Purpose To discuss and analyze the US Securities and Exchange Commission’s (SEC’s) FY 2017 Annual Report, which details its priorities for the coming year and evaluates enforcement actions that occurred during FY2017. Design/methodology/approach Summarizes key shifts from FY 2016, outlines the Enforcement Division’s current priorities, and, in view of its stated focus on the conduct of investment professionals and protection of retail investors, provides guidance to the investment management industry as it gears up for the coming year. Findings The Report provides insight into changes in the SEC’s approach to enforcement actions, including a general shift in tone suggesting a more measured approach to enforcement and remedies and a move away from a statistics-oriented approach, and a glimpse into its priorities for the coming year, including five core principles guiding the Division’s enforcement decisions. Practical implications As those in the asset management industry consider revisions to their policies and procedures for FY 2018, as well as their risk profile more generally, they should keep in mind key insights into the Commission’s enforcement strategy offered by the Report. Originality/value Practical guidance from experienced securities enforcement, litigation, compliance and anti-corruption lawyers.

Share price response to the SEC administrative proceedings against Chinese auditors

2019 ◽  
Vol 34 (9) ◽  
pp. 1131-1148
Author(s):  
Guoping Liu ◽  
Jerry Sun
Keyword(s):  
Design Methodology ◽  
Securities And Exchange Commission ◽  
Share Price ◽  
Accounting Firms ◽  
Content Type ◽  
Share Prices ◽  
Audit Failure ◽  
Price Response ◽  
Chinese Auditors ◽  
Administrative Proceedings

Purpose The purpose of this study is to examines whether clients’ share prices responded to three events, including the Securities and Exchange Commission (SEC) launch of administrative proceedings against five Chinese accounting firms on December 3, 2012, for their failure to hand over audit work papers due to conflict of jurisdiction; the issuance of SEC Administrative Law Judge Elliot’s ruling on January 22, 2014; and the settlement of the administrative proceedings on February 6, 2015. Design/methodology/approach This study uses the Schipper and Thompson approach. Findings It is found that share prices responded negatively around December 3, 2012, for USA-listed Chinese companies who were audited by Chinese auditors. Originality/value This study provides evidence on how share prices reacted to SEC enforcement actions against an affair of non-audit failure.

Success and succession planning

2020 ◽  
Vol 36 (8) ◽  
pp. 37-39
Keyword(s):  
Case Studies ◽  
Succession Planning ◽  
Design Methodology ◽  
Reading Time ◽  
Press Release ◽  
Share Price ◽  
Content Type ◽  
The Real ◽  
Pertinent Information ◽  
Practical Implications

Purpose This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Design/methodology/approach Reviews the latest management developments across the globe and pinpoints practical implications from cutting-edge research and case studies. Findings Why do firms change their boss? There, of course, numerous reasons why this happens, and almost none of them are admitted publicly when it happens. Some bosses are there today, and then gone tomorrow, and while the hastily issued press release from the firm in question cites a desire for the previous incumbent to spend more time with their family, this is usually code for ‘he was fired.’ Other bosses may leave more publicly, but the real reasons remain buried – although consecutive sets of poor financial results and a spiraling share price usually point to the real reasons. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Betas in the time of corona: a conditional CAPM approach using multivariate GARCH model for India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sonali Jain
Keyword(s):  
Design Methodology ◽  
Oil And Gas ◽  
Garch Model ◽  
Multivariate Garch ◽  
Capital Asset Pricing ◽  
Content Type ◽  
Conditional Capm ◽  
Asset Pricing Model ◽  
Multivariate Garch Model ◽  
Do So

PurposeThis paper empirically investigates the effect of the coronavirus pandemic (COVID-19) on the Indian financial market and firm betas, perhaps the first paper to do so. The results will be helpful for investors tracking betas during future the coronavirus waves.Design/methodology/approachA conditional capital asset pricing model (CAPM) and multivariate generalized autoregressive conditional heteroskedasticity (GARCH) model is used to estimate time-varying daily betas of the 50 largest Indian stocks spread across 16 industries over five years (Nov 2017 to May 2021), including the two waves of COVID-19 in India.FindingsThe results show that the betas increased during the COVID wave-1 (2020) but not during COVID wave-2 (2021). Moreover, the increase is more pronounced for consumer goods, infrastructure, insurance and information technology, unlike energy (oil and gas, power and mining) industries. Further, there are positive abnormal residual returns during the COVID waves. The results will be helpful for investors tracking betas during future COVID-19 waves.Originality/valueThis is perhaps the first paper to study the firm betas in light of the COVID-19 pandemic.

Investor relations measurement: an industry survey

2014 ◽  
Vol 18 (2) ◽  
pp. 176-192 ◽  
Author(s):  
Matthew W. Ragas ◽  
Alexander V. Laskin ◽  
Matthew Brusch
Keyword(s):  
Design Methodology ◽  
Share Price ◽  
Investor Relations ◽  
Content Type ◽  
External Assessment ◽  
Program Success ◽  
Measurement And Evaluation ◽  
Relationship Assessment ◽  
Future Work ◽  
Practical Implications

Purpose – Publicly-held companies collectively allocate tens of millions of dollars each year to investor relations, yet little research has been conducted into how investor relations officers (IROs) try to determine the effectiveness of this investment. The purpose of this paper is to discuss the above issues. Design/methodology/approach – This exploratory study is based on a survey (n=384) of IROs who are members of the National Investor Relations Institute (NIRI), the world's largest professional investor relations association. Findings – Respondents strongly rebuked using share price as a valid measure of investor relations performance. A factor analysis revealed that IROs use four factors to measure program success (listed in order of stated importance): first, international C-suite assessment; second, relationship assessment; third, outreach assessment; and fourth, external assessment. IROs at large-cap companies place significantly more importance on both C-suite assessment and relationship assessment than their peers at small-caps. Research limitations/implications – These results may not be generalizable to IROs who are non-NIRI members or investor relations consultants. Cross-cultural studies on this topic are needed. Practical implications – The evaluative factors that emerged in this study may be used by IROs to develop and refine their evaluation metrics relative to their peers. Originality/value – This is one of the first and largest studies to specifically examine program measurement and evaluation in the context of investor relations. These findings help set the stage for future work in this area.

How does capital market respond to Certified Emission Reductions (CERs) announcements in India

2019 ◽  
Vol 45 (7) ◽  
pp. 950-965 ◽  
Author(s):  
Praveen Kumar ◽  
Mohammad Firoz
Keyword(s):  
Event Study ◽  
Stock Prices ◽  
Abnormal Returns ◽  
Share Price ◽  
Emission Reductions ◽  
Content Type ◽  
Share Prices ◽  
The Mean ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to analyze the relationship between Certified Emission Reductions (CERs) information and a firm’s stock prices. Design/methodology/approach The present study is based on 193 CERs announcements by Indian firms over a 13-year period 2005–2017. The event study methodology is used to examine the impact of CERs announcements on a firm’s share prices. Findings The study suggests that the issuance of CERs did not produce any significant abnormal return. More specifically, the outcomes of event study shows that over a two-day event window from the event day to the day after the event (i.e. days 0 to 1), the mean and median of AARs are −0.25 and −0.34 percent, respectively. The abnormal returns on day 1 are not statistically significant as per the t-test. Moreover, the mean and median of abnormal returns after one day (−1) are negative, indicating that investors react negatively to CERs announcements. However, the mean and median of CAARs over both the two-day (i.e. days −1 to 0 and days 0 to +1) and three-day (i.e. days −1 to +1) event windows are positive, but not statistically significant based on the t-test. Research limitations/implications The findings of the study are quite comprehensive, relatively used only market-based criteria of a firm’s financial performance, e.g., share price, at times, inhibits generalizing the results. Originality/value To the best of the author’s knowledge, the present study is a first of its kind to investigate the relationship between the CERs information and a firm’s stock prices.

Determinants of changes in share prices in banking sector of Pakistan

2014 ◽  
Vol 30 (2) ◽  
pp. 121-130 ◽  
Author(s):  
Shahid Mohammad Khan Ghauri
Keyword(s):  
Banking Sector ◽  
Stock Exchange ◽  
Small Sample Size ◽  
Small Sample ◽  
Share Price ◽  
Content Type ◽  
Share Prices ◽  
Effect Regression ◽  
Asset Growth ◽  
The Impact

Purpose – Over the past many years ago, lot of work has been completed by the researchers trying to understand the relationship between different factors and stock exchange prices. The author has tried to explain different factors that affect share prices. The purpose of this paper is to know about the impact of size, dividend, profitability, asset growth of 15 Pakistani banks on share price on the basis of previous behavior of all the variables with each other. Design/methodology/approach – A sample of 15 banks has been selected from Karachi stock exchange for the period of 2008-2011, Arch-Garch and unit root cannot be applied to check the stationarity and volatility due to small sample size. The analysis utilized fixed effect regression model, the test includes regressing the dependent variable SP (share price) and independent variables size, DY (dividend yield), ROA (return on asset), and AG (asset growth). Findings – Results show that “size” has a positive significant relationship with the share price while the other variables have insignificant relationship. Originality/value – This paper helps in determination of the factors that affect share price fluctuations in banking sector of Pakistan. The similar affects can be observed in financial sector in other countries.

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