Rivalry in the Football Industry and Its Impact on the Stock Prices of Listed Football Clubs Master Thesis Finance
Rivalry in the football industry and its impact on the stock prices of listed football clubs Master Thesis Finance BY W.J.Tankink Supervisor: J.H. von Eije Groningen, January 11, 2018 University of Groningen Faculty of Economics and Business MSc Finance Words: 9381 Abstract Rivalry in the football industry is examined in this paper as it analyses rivalry effects on stock price performance of football clubs. It does not matter which sport is exercised and at what level, rivalry among clubs is one of the main sources of attractiveness of a league. The rivalry among football clubs leads to a positive “mood” in case the rival loses and leads to a negative “mood” in case the rival has a for them positive match result. It is hypothesised that these emotions due to the performance of the period rival affect the stock price performance of the focal football club. This study shows that there is evidence that the results of the period rival can have an impact on the investment decisions of club supporters. Keywords: Rivalry, Period Rivalry, Football clubs, European Football, Stock performance 2 1. Introduction Football, or what they call it in the United States soccer, is a well-known sport exercised all around the world. It all started in 1887. From then on it was allowed by the Fédération Internationale de Football Association (FIFA) to recruit football players as an individual football club. This was the start of, what is familiar to us now as, professional football. In other words, money made its entrance here and the role of money has increased a lot since then (Dobson and Goddard, 1998).
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