Rationality and Emotion in European Football: How Share Prices
React to a New Coach’s Appointment

D 2014

Rationality and Emotion in European Football: How Share Prices React to a New Coach’s Appointment

SVOBODA, Martin, Alexander ZURECK and Eric FRÉRE

Basic information

Original name

Rationality and Emotion in European Football: How Share Prices React to a New Coach’s Appointment

Authors

SVOBODA, Martin (203 Czech Republic, belonging to the institution), Alexander ZURECK (276 Germany, belonging to the institution) and Eric FRÉRE (276 Germany, guarantor)

Edition

1. vyd. Brno, European Financial Systems 2014, p. 178-183, 6 pp. 2014

Publisher

Masarykova univerzita

Other information

Language

English

Type of outcome

Stať ve sborníku

Field of Study

50200 5.2 Economics and Business

Country of publisher

Czech Republic

Confidentiality degree

není předmětem státního či obchodního tajemství

Publication form

printed version "print"

RIV identification code

RIV/00216224:14560/14:00077232

Organization unit

Faculty of Economics and Administration

ISBN

978-80-210-7153-7

UT WoS

000350701500023

Keywords in English

change in coach; event study; information efficiency; STOXX Europe Football Index

Abstract

V originále

The appointment of a new coach is often a turning point for the development of a football club’s game. But apart from the development of its game, the change affects the club’s economic prospects as well. The coach has a position similar to that of a leading manager in “classic” firms. Other studies have intensively investigated reactions in share prices to results of specific games (see, instead of many, Ashton et al. 2011). The relationship between a change in a club’s coach and the reaction of share prices has rarely been investigated. The aim of this paper is to find out whether there is a statistically significant influence on the share price performance of a listed European football club following a change in its coach. The findings within the paper demonstrate that the appointment of a new coach immediately affects the stock’s performance. The analysis is based on the STOXX Europe Football Index. The index contains 23 European football clubs that are listed on a European stock exchange. The investigation stretches over a period of nine years, from 31.08.2004 to 19.09.2013. The sample contains 46 observations. The event study is on the basis of abnormal returns. The test period covers +/- 3 days around the time of announcement of a new coach. This precludes mistakes arising from other effects, such as results of games.

Links

MUNI/A/0786/2013, interní kód MU

Name: Analýza a predikce vývoje cen finančních a investičních nástrojů

Investor: Masaryk University, Category A

Citovat

SVOBODA, Martin, Alexander ZURECK and Eric FRÉRE. Rationality and Emotion in European Football: How Share Prices React to a New Coach’s Appointment. In European Financial Systems 2014. 1st ed. Brno: Masarykova univerzita, 2014, p. 178-183. ISBN 978-80-210-7153-7.

@inproceedings{1205510,
   author = {Svoboda, Martin and Zureck, Alexander and Frére, Eric},
   address = {Brno},
   booktitle = {European Financial Systems 2014},
   edition = {1},
   keywords = {change in coach; event study; information efficiency; STOXX Europe Football Index},
   howpublished = {tištěná verze "print"},
   language = {eng},
   location = {Brno},
   isbn = {978-80-210-7153-7},
   pages = {178-183},
   publisher = {Masarykova univerzita},
   title = {Rationality and Emotion in European Football: How Share Prices React to a New Coach’s Appointment},
   year = {2014}
}

TY  - JOUR
ID  - 1205510
AU  - Svoboda, Martin - Zureck, Alexander - Frére, Eric
PY  - 2014
TI  - Rationality and Emotion in European Football: How Share Prices React to a New Coach’s Appointment
PB  - Masarykova univerzita
CY  - Brno
SN  - 9788021071537
KW  - change in coach
KW  - event study
KW  - information efficiency
KW  - STOXX Europe Football Index
N2  - The appointment of a new coach is often a turning point for the development of a football club’s game. But apart from the development of its game, the change affects the club’s economic prospects as well. The coach has a position similar to that of a leading manager in “classic” firms. Other studies have intensively investigated reactions in share prices to results of specific games (see, instead of many, Ashton et al. 2011). The relationship between a change in a club’s coach and the reaction of share prices has rarely been investigated. The aim of this paper is to find out whether there is a statistically significant influence on the share price performance of a listed European football club following a change in its coach. The findings within the paper demonstrate that the appointment of a new coach immediately affects the stock’s performance. The analysis is based on the STOXX Europe Football Index. The index contains 23 European football clubs that are listed on a European stock exchange. The investigation stretches over a period of nine years, from 31.08.2004 to 19.09.2013. The sample contains 46 observations. The event study is on the basis of abnormal returns. The test period covers +/- 3 days around the time of announcement of a new coach. This precludes mistakes arising from other effects, such as results of games.
ER  -

SVOBODA, Martin, Alexander ZURECK and Eric FRÉRE. Rationality and Emotion in European Football: How Share Prices React to a New Coach’s Appointment. In \textit{European Financial Systems 2014}. 1st ed. Brno: Masarykova univerzita, 2014, p.~178-183. ISBN~978-80-210-7153-7.

Detailed Information on Publication Record