Abnormal Returns of Soccer Teams: Reassessing the Informational Value of Betting Odds

Massimiliano Castellani (), Pierpaolo Pattitoni and Roberto Patuelli ()
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Massimiliano Castellani: Department of Economics, University of Bologna, Italy; The Rimini Centre for Economic Analysis (RCEA), Italy

Working Paper series from Rimini Centre for Economic Analysis

Abstract: We analyse the links between soccer match results, bets and stock returns of all listed European soccer teams. Using an event study approach, we measure abnormal returns following wins, ties and losses. Wins are associated with positive abnormal returns, and ties and losses with negative abnormal returns. Additionally, we analyse the role of bets in shaping market reactions to unexpected results, which we find to be non-significant. We propose an alternative econometric approach, using seemingly unrelated regression models, to take into account the problem of overlapping events. While our results concerning match results are confirmed, abnormal returns following unexpected results are found to be statistically significant and to magnify the positive (negative) effects of wins (losses).

Keywords: Soccer and Bets; Information and Market Efficiency; Event Studies; Event Clustering; Seemingly Unrelated Regression Equation (SUR) (search for similar items in EconPapers)
JEL-codes: C30 G14 L83 (search for similar items in EconPapers)
Date: 2011-05, Revised 2013-08
New Economics Papers: this item is included in nep-eur and nep-spo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published in Journal of Sports Economics, 16(7):735-759, 2015

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http://www.rcea.org/RePEc/pdf/wp26_11.pdf (application/pdf)

Related works:
Journal Article: Abnormal Returns of Soccer Teams (2015)
Working Paper: Event Clustering and Abnormal Returns: Reassessing the Informational Value of Bets (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:rim:rimwps:26_11

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