A PANEL COINTEGRATION APPROACH TO MODELLING THE SHARE PRICES OF FOOTBALL CLUBS
Öz
Although equity valuation has been widely studied in the finance literature, very few studies have
analysed the valuation of football club companies, which (due to their non-profit nature) significantly
differs from the valuation of other institutions and thus requires different analytical techniques. This study
contributes to the equity valuation literature on football clubs by proposing a valuation model based on
the net market value of assets. Besides the market value of assets and liabilities, a number of proxy
variables representing brand value, economic-wise management factors, investment sentiment in the
market and a factor representing the value derived from the league in which the club participates are
included in the model. The proposed model is tested with quarterly data from the 2011/12 season to the
2016/17 season on four publicly traded football club companies competing in the Turkish Super League,
with panel cointegration regression tests revealing the statistical significance of the variables included.
Anahtar Kelimeler
Equity valuation, share value, football clubs, sports finance, valuation factors
Kaynakça
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