 The football world upside down: Traditional equities as an alternative for the new fan tokens? A portfolio optimization studyCarlos Esparcia and Antonio Díaz Research in International Business and Finance, 2024, vol. 71, issue C Abstract: This study provides a comprehensive analysis of the relationship between fan tokens and equities as investment vehicles in football clubs. Using the GO-GARCH methodology to account for time-varying higher-order co-moments, we examine the risk-return characteristics of these assets in different portfolio contexts over the period November 2021-March 2023. Our results show high diversification opportunities between fan tokens and equities, especially with investments in different leagues. Portfolio analysis shows that equities generally outperform fan tokens as an investment vehicle, highlighting the importance of active portfolio management. The study also shows that equities have broader diversification potential than fan tokens when added to a portfolio. Furthermore, Turkish fan tokens have better characteristics than Italian fan tokens, possibly due to the nonfinancial benefits for investors. The results are relevant for both retail and institutional investors, regardless of their risk tolerance profiles. Keywords: Fan tokens; Equities; Football; Portfolio choice; 4th-order moments (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:71:y:2024:i:c:s0275531924002897 DOI: 10.1016/j.ribaf.2024.102496 Access Statistics for this article Research in International Business and Finance is currently edited by T. Lagoarde Segot More articles in Research in International Business and Finance from Elsevier |
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