On the Relationship between Sport and Financial Performances: An Empirical Investigation
Autor: | Luca Di Simone, Davide Zanardi |
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Jazyk: | angličtina |
Rok vydání: | 2021 |
Předmět: |
Finance
C23 (Panel Data) business.industry Profit maximization Performance Football Efficiency Financial Fair Play Settore SECS-P/09 - FINANZA AZIENDALE Business model Panel Analysis Agency Costs Panel analysis Economics Remuneration Business Management and Accounting (miscellaneous) Position (finance) Endogeneity G30 (Corporate Finance) business Empirical evidence Panel data |
Popis: | PurposeOur paper shows an empirical analysis of the European football companies to test the association between sport results, proxied by ranking position and financial performance in panel framework (starting from 59 firms over the 2013–2018 time span).Design/methodology/approachWe use panel data models for studying the relationship of our interest and we make no a priori assumption about the strict exogeneity of the covariates and estimate equation using both Random Effects GLS (RE-GLS) and Fixed Effects OLS (FE-OLS) estimations.FindingsOur results suggest there is stable and significant relationship between the two types of performance and that when detectable this is linked in a positive way to the profit maximization of the business model, suggesting that it is more useful for investor remuneration and to increase technical-tactical resources and therefore sports results. Not surprisingly, as for many clubs, concentration effect is relevant while the financial fair play regulation is not. In fact, the current regulation of UEFA authority does not seem to have an impact on sport and financial results.Originality/valueThis work complements literature in several ways. First, we offer new empirical evidence for the association between the sport and financial performance for a panel of the European football companies, listed and not. Second, we show that the persistence of the sport results is strongly correlated with financial performance. |
Databáze: | OpenAIRE |
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