Sporting Performances and the Volatility of Listed English Football Clubs

International audienceThis study investigates the effect of sporting performances on the volatility of listed English football clubs. The theoretical background is based on the importance of intangible assets in the football industry and the difficulty in evaluating them. This results in the hypothesis that sporting results affect the volatility of share prices. The empirical analysis is based on the family of ARCH models and relates to a sample of English football clubs listed on the on AIM and included in the Dow-Jones STOXX Football index. The findings show that sporting performances have a significant impact on the stock market valuation of football clubs. The magnitude of the stock market reaction also depends on the nature of the result (defeat, draw or win) and on the match venue (home or away). Defeats at home produce the most volatility, raising the question of shareholder motivations of football clubs