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- Title
The Effects of (Un)Expected Match Outcomes on Stock Return: A Case Study of Borussia Dortmund.
- Authors
Frick, Bernd; Semmelroth, Dirk
- Abstract
We analyze the nature of stock price reactions of Borussia Dortmund, the only publicly traded soccer club in Germany, following domestic league and international matches over an extended period of time. Our results suggest that abnormal returns vary with the match result, the match venue, the competition type, bookmakers' expectations, and the importance of the Bundesliga match. Although our results confirm the evidence presented in previous studies, they are surprising insofar as the legal form of Borussia Dortmund GmbH & Co. KGaA--a mixture of a stock company (AG) and a limited partnership (KG)--is quite different from that of traditional stock companies. From a theoretical perspective, diluted property rights and a lack of managerial monitoring are the main characteristics of this legal form. However, the club managers' career concerns and the competitive pressures of the football industry seem to compensate for these deficits in the organizational architecture.
- Subjects
BORUSSIA Dortmund GmbH &; Co. KGaA; STOCK prices; SOCCER teams; LIMITED partnership; EFFICIENT market theory; STOCK companies
- Publication
International Journal of Sport Finance, 2021, Vol 16, Issue 4, p167
- ISSN
1558-6235
- Publication type
Article
- DOI
10.32731/IJSF/164.112021.01