Lecture and Seminar, Prof. Dr. Georg Stadtmann
Presentation:
"News and Pure Signals - The Case of a Publicly Traded Football Club": ppt-file pdf-file
Course Description:
We use stock market data for Borussia Dortmund GmbH & Co. KGaA – one of the leading German football clubs – for an application of the news model. Due to the specific characteristics of the news generating process, the case of a publicly traded sport club is a very appropriate candidate for testing this model. We elaborate whether new information regarding the sporting success helps to explain subsequent changes in the stock price of Borussia Dortmund. In a first step, we develop an industry model that links the sporting success to the economic success. In a second step, we quantify the effect of match outcomes in the different competitions on the subsequent change in the stock price.
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