Influence of MUFC's sport results on stock prices and indices on the stock exchanges in New York and London

Sebastian Majewski

Abstract


The main goal of the article is to prove that stock prices of Manchester United company depend on sport results of this football club. It will try to answer the question - does the rate of return on the shares of Manchester United (MU), listed on the stock exchange in New York, affect the results of sport events taking place with the participation of MUFC and its biggest competitor, Manchester City? In addition, a similar question is posed in relation to the FTSE100 index of the stock exchanges in London and the index DJFI. In order to verify the hypothesis, the sport performance of MUFC and its biggest rival in the Premiership - Manchester City betting odds for the matches these clubs played in the English league, English Cup and Champions League England in 2012-2014 will be tested. There will be also analyzed a very important event in the history of the club - the retirement of coach Sir Alex Ferguson. GARCH - type models (p, q) and some tools of statistics in the process of verifying the hypotheses will be used.

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DOI: http://dx.doi.org/10.17951/h.2014.48.3.207
Date of publication: 2015-05-23 19:36:29
Date of submission: 2015-05-23 11:10:21


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