IMPACT OF SPORTS RESULTS ON THE PROFITABILITY OF PORTUGUESE SAD SHARES: THE CASE OF BENFICA SAD

Abstract

Football is becoming more prevalent in the global financial markets. In addition to the financing of the clubs themselves, professionalization and exorbitant financial flows make this market very attractive to investors. However, as the behavior of the games is totally random and difficult to predict, it is important to understand to what extent the results have an impact on the value of the quotation. It was this idea that motivated this work. The Event methodology was used and the price of the share of Benfica SAD was analyzed during 3 sports seasons, considering the value of its price on the business day after the matches. The impact of defeats, draws and victories was tested. Subsequently, we also analyzed whether national and international games had different impacts. For this purpose, the abnormal return was calculated, which consists of the difference between the expected return and the effective return. Parametric Tests (T-Test) and Non-Parametric Tests (Wilcoxon Test) were carried out on the data obtained, in order to prove that the results of the games have an impact on the value of the shares and lead to abnormal returns. The conclusions point out that there is a direct relationship between the results of the games and the share price on the following business day. There is a positive abnormal return on winning days (0.00869) and, on the other hand, a negative abnormal return on defeats (-0.0284). In the case of a tie it is not significant.