 Sports failures and stock returns between rationality and emotionality: Evidence from the UEFA Champions LeagueEnrico Supino, Andrea Tenucci and Gianluca Di Nanna Research in International Business and Finance, 2024, vol. 70, issue PB Abstract: The paper explores the relationships between sports performance and financial performance in football, with a focus on the UEFA Champions League competition games. Conducting an Event Study Analysis on games of eighteen listed football companies taking part in the UEFA Champions League from 2006, the paper finds that the exit from the competition produced a negative statistically significant impact on the stock returns of listed football companies. A double, mixed and contrasting effect co-exists: the rational and the emotional (sentiment). On the one hand, investors rationally evaluate the sports failures by considering the teams' realistic chances of success. On the other hand, certain emotional aspects are important in investors' decisions. The emotional part is also present in variables originally expected to be rational. Keywords: Football; Event Study Analysis; Sports performance; Financial performance; Abnormal return; Football companies' value (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:70:y:2024:i:pb:s0275531924001521 DOI: 10.1016/j.ribaf.2024.102359 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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