Abnormal Returns of Soccer Teams

Massimiliano Castellani, Pierpaolo Pattitoni and Roberto Patuelli ()

Journal of Sports Economics, 2015, vol. 16, issue 7, 735-759

Abstract: We analyze the links between soccer match results, betting odds, and stock returns of all listed European soccer teams. Using an event-study approach, we measure positive (negative) abnormal returns following wins (ties and losses). Additionally, we analyze the role, which we find to be nonsignificant, of betting odds in shaping market reactions to unexpected results. We propose an alternative econometric approach, using seemingly unrelated regressions models, to take into account the problem of overlapping events. Abnormal returns following unexpected results are then 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)
Date: 2015
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Citations: View citations in EconPapers (6)

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https://journals.sagepub.com/doi/10.1177/1527002513505285 (text/html)

Related works:
Working Paper: Abnormal Returns of Soccer Teams: Reassessing the Informational Value of Betting Odds (2013)
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:sae:jospec:v:16:y:2015:i:7:p:735-759

DOI: 10.1177/1527002513505285

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