The Benefits of Financial Markets: A Case Study of European Football Clubs

20 Pages Posted: 27 Jan 2009 Last revised: 2 Feb 2009

See all articles by Dirk G. Baur

Dirk G. Baur

University of Western Australia - Business School; Financial Research Network (FIRN)

Conor McKeating

Dublin City University

Date Written: January 31, 2009

Abstract

This study analyses the performance of European football clubs which undergo an initial public offering (IPO). We use a unique time-series and cross-section dataset consisting of domestic and international performance data to develop an event study to investigate the effects of a football club's on-field performance before and after the IPO. The study follows from the observation that, as financial markets are expected to exhibit a positive influence on the economy as a whole, football clubs who access these markets should benefit as well. However, the conclusions of our study are similar to those in the corporate finance literature, where firms who undertake an IPO find their stock price underperforming similar firms in the medium term. Using our metric, football clubs have a diminished domestic and international performance after the stock market listing.

Keywords: football, public markets, IPO

JEL Classification: G14, G32, L83

Suggested Citation

Baur, Dirk G. and McKeating, Conor, The Benefits of Financial Markets: A Case Study of European Football Clubs (January 31, 2009). Available at SSRN: https://ssrn.com/abstract=1333532 or http://dx.doi.org/10.2139/ssrn.1333532

Dirk G. Baur

University of Western Australia - Business School ( email )

School of Business
35 Stirling Highway
Crawley, Western Australia 6009
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

Conor McKeating (Contact Author)

Dublin City University ( email )

Ireland 9
Dublin 9, leinster 9
Ireland

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