Signalling in the Stock Markets: Evidence from Juventus FC

Abstract

In the paper, we examine the key drivers of the stock prices of a publicly traded football club, Juventus Football Club, one of the leading football clubs in the Italian Serie A. The underlying financial theory that we apply and test is the news model, which states that changes in the stock prices are the results of the emergence of the unexpected new public information. When applying it to sport industries, it can be understood that unexpected match results affect stock price of the club. In addition, by bringing the reversed news model into the paper, we test whether major corporate governance related events have any explanatory effect on stock prices.