ASIAN JOURNAL OF ECONOMICS AND BUSINESS MANAGEMENT

2022, VOL. 1, NO. 2, 92 – 99

https://doi.org/10.53402/ajebm.v1i2.83

OPEN ACCESS

The effect of sports performance and financial performance on European soccer club
stock prices

Hendri Prayoga
Fitra Dharma*
Dewi Sukmasari
Saring Suhendro

Accounting Department, University of Lampung, Lampung, Indonesia

ABSTRACT KEYWORDS
This study discusses the effect of sports performance and financial performance on the price of Stock price; Sports
European football. This topic is still a hot topic of discussion considering that football is a sport that is Performance; Financial
starting to develop into a real business industry that has a big impact on society. This phenomenon is performance; Liquidity ratio;
caused by many speculations that football can become an industry that is in demand by investors. Solvability ratio; Profitability
research conducted from 2016 to 2021 using articles with credible sources. Empirical results show ratio
that sports performance has a positive and significant effect on the stock price of football clubs. The
liquidity ratio with the Current Ratio indicator has a positive and significant effect on the stock price
of football clubs. The solvency ratio with the Debt to Asset Ratio proxy has a negative and significant
effect on the stock price of football clubs. However, the profitability ratio with the NPM indicator has
no effect on the stock price of the football club. The limitation of this study is that it focuses on
European football clubs listed on the Stock Europe Football. Future research is expected to expand
the scope of research such as the sample used and measurement indicators. aims to provide more Received: 26 July 2022
accurate arguments and results regarding the effect of sports performance and financial Accepted: 16 August 2022
performance on the stock price of football clubs. Published: 26 August 2022

Introduction
Globalization has an impact on sports, especially football. Football has developed into an industry, not just
entertainment. The development of the football industry that occurs into a real business has a big impact on society
(Rey & Santelli, 2017). Football has the number one sport market share in most countries in the world. The
development of football has become a rapidly growing industry on the European continent. Whereas Europe is
famous for being the epicentre of football, which shows the growth of the football market, which tends to be stable
and even continues to increase every year, as shown in Figure 1.

Figure 1. European football market size (€ billion).

Figure 1 shows that there is an increase in revenue every year from the European football market as a whole
during the 2006/2007 to 2018/2019 season. The highest increase was in the 2018/2019 season with revenues of
€28.9 billion, of which the largest revenue came from the Big Five European Leagues, generating €17 billion, an
increase of 19% from the previous year. This indicates that football provides great enthusiasm for the community,
thus enabling football to become an increasingly large industry in the industrial world. The development of football
that continues to occur encourages football clubs to conduct Initial Public Offerings (IPO). In line with this, on June
17, 2019, for the first time in Southeast Asia, especially for the Indonesian football club, namely, Bali United,

CONTACT Fitra Dharma fitradharma@gmail.com

© 2022 The Author(s). Published with license by Lighthouse Publishing.

This is an Open Access article distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International (CC BY-NC-ND 4.0) License
(https://creativecommons.org/licenses/by-sa/4.0/), which allows others to share the work with an acknowledgement of the work’s authorship and initial publication in this journal.
 ASIAN JOURNAL OF ECONOMICS AND BUSINESS MANAGEMENT 93

conducted an IPO by releasing 2 billion initial shares at a price of 175 per share. The initial demand for shares
exceeded the offer, so that the initial offering of Bali United shares was oversubscribed (Pradhan et al., 2017)
.Another opinion about the football industry is that many European football clubs are in trouble with debt so that
they go bankrupt. Factors that allow this to happen are expenditures on purchasing new players, player salaries,
coach salaries, building stadiums and so on (Ika et al., 2021)
The phenomenon above gives speculation that not all football clubs have managed to survive in market
share. An indicator of the success of a company can be reflected in the stock price, where there is a sale and
purchase transaction of shares reflecting the strength of an industry's market share on the stock exchange. The
football industry will not succeed without good financial and sporting performance. Based on the facts on the
ground, a good football club is a club that has the ability to balance financial performance and sports performance
or appearance in a match (Ay & Enes, 2020). Sports performance and good financial performance are attempts by
the football club to reflect the success of the football club, especially for clubs that have sold their shares to the
public. Sports performance and good financial performance certainly provide a good signal of information on the
stock market and attract investors to invest. To support the performance of football clubs, investment activities
carried out by investors allow football clubs to obtain funds from parties who have invested funds in the capital
market. Meanwhile, investors benefit from the investments made because investment activities by investors are one
of the foundations for the survival of the football market share. So, sports performance and financial performance
are things that describe how a football industry can generate profits for investors who invest their capital.
Sports performance is information that is quite considered by investors, because when a football club is
able to provide its best performance in a league, the football club is considered to have good performance and is
able to generate profits. Good sports performance information has an influence on the attractiveness of investors in
investing because it is seen as having a good performance so that it can add value to the company. Financial
statements act as a medium of communication between creditors and management. The publication of financial
statements has an impact on making rational economic decisions on the risks inherent in investments. This decision
will shape the price of a share. Maci et al (2020) explain that the positive impact of sports outcomes is the increase
in the share price of football clubs. This increase is due to the emotional component that drives the choice of
investors, who may be frequent fans and very sensitive in the short term to sports outcomes. However, there are
other factors that support success in the market, one of which is financial performance. Research Maci et al (2020)
provides results that show sports performance and economic performance have a positive and significant impact on
the stock price of football clubs. Research by Nurcahyani & Bhilawa (2021) concludes that the liquidity ratio,
solvency ratio, profitability ratio, and sports performance have an effect but not significantly on the stock price of
football clubs. Other studies with various research results related to this topic include Ay & Enes (2020), Yudistira &
Adiputra (2020), Oral (2016), Allouche & Soulez (2015), Rey & Santelli (2017)

Literature review

Signaling theory
Signal theory or signaling theory is an action taken by the company's management that informs investors
about how management views the company's prospect (Spance.M, 1973). Signaling theory explains that
management acts as a signal giver while outside parties act as signal recipients, for example, investors. Signaling
theory is broadly related to information availability (Ay & Enes, 2020). Signaling theory describes an action taken by
the company in giving instructions to stakeholders, especially investors, in the form of information signals about
the company itself. The information in question can be in the form of information on company policies, information
on financial statements, or other information disclosed by company management voluntarily (Rey & Santelli, 2017).
Signaling theory also provides an explanation that reducing information asymmetry can be done by signaling by
managers, where managers provide information on the application of conservatism accounting in financial
statements. The quality of disclosure of financial statement information can affect the quality of investor decisions.
Therefore, the quality of the information is intended to reduce information asymmetry (Supriadi & Ariffin, 2018).
Field performance information and financial reports that show positive information will have an impact on market
reactions and have an influence on changes in stock prices that occur (Nurcahyani & Bhilawa, 2021).

Hypothesis development

The effect of sports performance on soccer club stock prices

Sports performance is information that is quite considered by stakeholders, because when a football club is
able to provide its best performance in a league, the football club is considered to have good sports performance
(Maci et al., 2020). Sports performance information has an influence on the attractiveness of investors in investing
in soccer clubs because they are seen as having a good performance so as to add value to the company (Arkan,
2016).
94 Hendri Prayoga, Fitra Dharma, Dewi Sukmasari, & Saring Suhendro

H1: Sports Performance Affects Stock Prices of Football Clubs Listed on Stock Europe Football Season
2016/2017-2020/2021

The effect of liquidity ratio on football club share prices

The liquidity ratio is able to describe the company's financial situation by providing information on the extent
to which the company can meet current obligations without having to increase capital (Pratama et al., 2020). A good
liquidity ratio certainly gives an idea that it is possible for the football club to continue operating, so this is good
information for investors (Nurcahyani & Bhilawa, 2021).
H2: Liquidity Ratio Affects Stock Prices of Football Clubs Listed on Stock Europe Football Season 2016/2017 -
2020/2021

The influence of solvency ratios on soccer club stock prices

A high solvency ratio allows it to influence investor interest, thus having an impact on the demand and
supply of shares. Information about the solvency ratio is available to influence the rise and fall of stock prices
(Nuraini et al., 2019). The increase in debt will have an impact on the company's net profit. The larger debts have a
negative impact on the performance of a company. The cause of this is the greater the interest expense that is borne
and reduces profits. So that it will also affect the dividends to be distributed (Rohde & Breuer, 2016).
H3: Solvency Ratio Affects Stock Prices of Football Clubs Listed in Stock Europe Football Season 2016/2017 -
2020/2021

The effect of profitability ratios on football club share prices

A good profitability ratio is positive information for investors from the perspective of the profits to be
obtained, so that it will affect the investment decisions of investors. So that will have an effect on stock (Ika et al.,
2021). The demand and supply of soccer shares occur due to the existence of good information signals about the
company's profits so that it has an influence on investors' profit expectations on their investments, which in turn
will have an impact on the soccer club's stock price (Sumantri & Agustianti, 2017).
H4: Profitability Ratio Affects Stock Prices of Football Clubs Listed in Stock Europe Football Season
2016/2017 - 2020/2021

Methods
This study uses quantitative data types, while the data sources use secondary data. Secondary data is data
obtained directly by researchers or data collectors (Widarjono, 2018). Sources of data in this study were obtained
from sites, Stoxx.Com, Investing.id, Football Club Annual Report, Yahoo Financial, Uefa.Com, and other official
websites that provide information needed by researchers. Data was collected by using the documentation method,
and the secondary data needed were articles that were relevant to the topic of this research.
The European football clubs registered with Stock Europe Football during the research period 2016–2021
were the research sample used. Purposive sampling is a research sampling method with the following criteria: The
selected sample is a football club that has complete data, either in the form of an annual report or published on the
official website that presents data on the financial statements of football clubs during the research period, 2016–
2021. Based on predetermined criteria, 21 football clubs met these criteria, with a long research period of five years.
So the total research sample is 100 samples, with 5 outlier data.

Research Model
Y = α + β1KO + β2CuR – β3DAR + β4NPM + e

Information:
Y : Stock price
α : Constant
KO : Sport performance
CuR :Current ratio
DAR :Debt to asset ratio
NPM:Net profit argin
β : Coefficient of independent variable
e :Error term
 ASIAN JOURNAL OF ECONOMICS AND BUSINESS MANAGEMENT 95

Measurement Indicator

Stock price
The stock price is the price of shares formed as a result of the demand and supply of shares on the stock
exchange under certain conditions (Putri, 2019). The measurement of the stock price variable in this study considers
the Euro currency (€). Football clubs that do not use Euros in their share prices and financial statements will then be
converted into Euros according to the date of the research data. The average monthly closing share price is used to
measure the stock price variable, with the following formula:

Sports performance
Sports performance is the performance or ability of a football club in obtaining points in a match with the
result of victory or defeat. In this study, sports performance assessment indicators use point weighting taken from
Silva (2015). The point weighting is intended to provide an assessment relevant to the level of the league the
football club participates in. The sports performance assessment indicator uses the KO = CL+EL+LAK formula.

Liquidity ratio
The liquidity ratio is a measurement of a company's capability to meet various short-term debt demands.
The current ratio is an indicator used in assessing the liquidity ratio in this study. The current ratio describes the
overall ratio of the company's current assets to current liabilities. As a reflection of efforts to return current
liabilities within a certain period. The average Current Ratio value is 2 times, or 200%.

Solvency ratio
The solvency ratio provides information on the comparison of assets owned by creditors to assets owned by
shareholders. In other words, this ratio compares the overall level of both short-term and long-term liabilities to the
company's total assets. The solvency ratio in this study uses a debt to asset ratio proxy, DAR, to measure the
magnitude of the influence of debt on the company's asset management. The greater the value of the debt to asset
ratio that projects the solvency ratio, the higher the risk for the company.

Profitability ratio
A company's profitability ratio is a company's ability to generate profits. In other words, this ratio measures
how effective management is in managing assets in order to earn a profit. High net income certainly gives the
assumption that the company will generate finance for stakeholders. The profitability ratio in this study was
measured using a net profit margin.

Results

Descriptive statistics
The statistical tool used in this research is using SPSS (Statistical Package for Social Science). With the results
of descriptive statistics as follows:

Table 1. Results of descriptive statistics

Std.
N Minimum Maximum Average
Deviation
HS (Y) 100 ,067 8,075 2.28357 2.394851
KO 100 1 8 2.81 1,868
CuR 100 ,087 2.145 ,78411 ,485113
DAR 100 ,097 3,472 ,92962 ,555186
NPM 100 -,880 ,910 ,08580 ,319789
Note:HS (Stock price), KS (Sport performance), CuR (Current ratio), DAR (Debt to asset ratio), NPM (Net profit margin)

Based on the tests that have been carried out, the results obtained show that the stock prices of European
football clubs listed on Stock Europe Football have an average value of 2.28357 Euros from the entire sample of
football clubs. While the standard deviation value is 2.394851, The minimum share price value for the stock price
variable is 0.067 Euro, namely the Brondby If B football club for the 2020/2021 season and the 2020/2021 season.
The maximum share price value for the football club's share price is 8.075 Euros, which is the 2018/2019 season for
the Borussia Dortmund football club. This shows that the Borussia Dortmund football club has good value in the
eyes of investors because it has the highest share price value of all the football clubs in the research sample. Sports
performance (X1) shows the minimum value of the variable is 1.00 (one). This shows the lowest level of sports
96 Hendri Prayoga, Fitra Dharma, Dewi Sukmasari, & Saring Suhendro

performance, namely at the football clubs AGF, Aik Football, Brondby If B, Rangers (RFC), Silkeborg, Sporting Clube
De Portugal, and Trabzonspor Sportif Yatirim in the 2020/2021 season. The 2019/2020 season is for football clubs
Aalborg Boldspilklub, Aik Football, Besiktas, Brondby If B, Fenerbahce Sportif Hizmet, Futebol Clube Do Porto,
Galatasaray, Silkeborg, Sporting Clube De Portugal. The lowest level of sports performance was also shown by
football clubs Aik Football, Besiktas, Brondby If B, Silkeborg, Trabzonspor Sportif Yatirim in the 2018/2019 season.
The 2017/2018 season was for football clubs AGF, Rangers (RFC), Silkeborg, Sporting Clube De Portugal, and
Trabzonspor Sportif Yatirim. In addition, the 2016/2017 season was one of the seasons with the lowest sports
performances, namely at the football clubs AGF, Galatasaray, Olympique Lyonnais, Rangers (RFC), Silkeborg, and
Trabzonspor Sportif Yatirim. The maximum value of the sports performance variable is 8.00 (eight), which is the
highest level of sports performance produced by the AFC Ajax and Juventus football clubs in the 2016/2017 season.
The average value of the sports performance of the football club during the season is 2.81 and the standard
deviation is 1.868.
The second independent variable (X2) used in this study is the liquidity ratio proxied by the Current Ratio
(CuR). Based on the results of descriptive statistical analysis calculations, the lowest value of Current Ratio is 0.087,
where this value was generated by the Silkeborg football club in the 2016/2017 season. This value illustrates the
Silkeborg football club's ability to pay short-term obligations that will soon mature with a very low current asset
value. The highest value of the Current Ratio is 2.145, produced by the football club Aalborg Boldspilklub in the
2017/2018 season, which shows a good liquidity ratio performance because the Current Ratio value is greater than
200%. The average value of the liquidity ratio as proxied by the Current Ratio is 0.78434 with a standard deviation
of 0.484865. This shows that the average ability of a football club to fulfil its short-term obligations with its current
assets is 0.78443. Although the Current Ratio of the football club Aalborg Boldspilklub is considered good, based on
the results of tests conducted, there are still many football clubs that have an unfavourable Current Ratio (Hagen
and Cunha, 2019). This can be seen from the average value, which shows a value of 0.784, or 78.4%, which is smaller
than 200%.
The solvency ratio with the Debt to Assets Ratio indicator is 3,472 by the football club Aik Football in the
2016/2017 season. The value of the Debt to Assets Ratio shows that the football clubs, Aik Football and Juventus,
have the ability to meet short and long-term obligations, which are considered less good because they have a value
greater than the average standard Debt to Assets Ratio for an industry. Silkeborg in the 2016/2017 season and
Sporting Clube de Portugal in the 2019/2020 season are football clubs that have a minimum debt to assets ratio
value of 0.097. The average value of the solvency ratio with the Debt to Assets Ratio indicator in this study is
0.92962 with a standard deviation of 0.555185. Based on the average value of the Debt to Assets Ratio in this study,
it can be explained that the average football club has a large solvency ratio. Because the average value of the Debt to
Assets Ratio for the entire football club is above 0.35. So it can be said that these conditions indicate that the
average football club in this study is not good. The fourth independent variable (X4) is the profitability ratio with the
net profit margin indicator. The results of the descriptive test show that the minimum value of the profitability ratio
with NPM proxy is -0.880 at the Trabzonspor Sportif Yatirim football club in the 2017/2018 season and the
maximum value is 0.901 at the Olympique Lyonnais football club in the 2020/2021 season and Aalborg Boldspilklub
in the 2017/2018 season. The average value of the profitability ratio with the NPM proxy in this study is 0.0858 with
a standard deviation of 0.319789. These conditions show that the average football club can make a profit from sales
or income of 8.58%.

Classic assumption test

One of the requirements for the multiple regression test is to meet the classical assumption test. The
classical assumption tests in this study consisted of a normality test, a multicollinearity test, a heteroscedasticity
test, and an autocorrelation test.
The Kolmogorov-Smirnov test results demonstrated that the data in the study were normally distributed.
This can be seen in the results of the normality test, which shows that the value of Sig KS is greater than 0.05, which
is 2.00 > 0.05. Based on the tests that have been carried out, the VIF values are obtained for all dependent and
independent variables. Namely, Stock Price, Sports Performance, Current Ratio, Debt to Asset Ratio, and Net Profit
margin show a value of less than 10 with a tolerance value of more than 0.10. This value indicates that there is no
multicollinearity or correlation between variables.
Tests related to the heteroscedasticity test showed that the significance value of all independent variables
was greater than 0.05 (sig > 0.05). These results prove that all independent variables in this study are homoscedastic
and there is no difference in variance in the regression function. The number of samples in this study was 100, with
the number of independent variables being namely 4. Based on the results of statistical tests, it was determined that
D was 2.010 with a dl value of 1.8498. With the calculation that is 1.8498 < 2.010 < 2.1502. So it can be concluded
that the data does not experience symptoms of autocorrelation because it meets the requirements du < d < 4 – du
 ASIAN JOURNAL OF ECONOMICS AND BUSINESS MANAGEMENT 97

Hypothesis testing

Multiple Regression Analysis Results

Based on the tests that have been carried out, the multiple linear regression equations in this study are as
follows:
HS = 1.249 + 0.466KO + 1.012CuR- 0.088 NPM

The equation above shows a constant value of 1.249, which means that if the independent variable does not
increase, the value of the stock price will be 1.249. The value of sports performance shows 0.466, which means that
each addition of one sports performance unit will add 0.466 to the stock price. The Current Ratio shows a beta
value of 1.012, which means that the stock price will increase by that value if there is an increase in the CuR value
of one unit. -1.161 in the Debt to Asset Ratio shows that each addition of one unit of solvency ratio with the DAR
proxy will reduce the stock price by 1.161. The profitability ratio with the Net Profit Margin proxy shows a value of -
0.088, which means that for each additional NPM of one unit, it will reduce the stock price by 0.088.

Coefficient of Determination Test

The result of the coefficient of determination test shows the value of R2 is 0.563. This figure shows that the
relationship between the dependent variable and the independent variable can be explained by 56.3% and that 43.7%
is explained by other factors. This means that changes in the soccer club's stock price can be explained by sports
performance, liquidity ratios, solvency ratios, and profitability ratios of 56.3%.

Model Validity Test

Based on the F test, the significance value is 0.00 while the F table shows the value of 2.03 and the F count is
8.213. From the results above, it can be concluded that the model meets the eligibility requirements and the
research can be continued. Because F count > F table and the significance value is less than 0.05.

Table 2. Results of Individual Parameter Significance Test

Model Ha T Sig. Information
Constant 1,698 ,093
KO H1 4,147 ,000 Supported
CuR H2 2,124 0.036 Supported
DAR H3 -2,610 0.011 Supported
NPM H4 -,130 ,897 Not Supported
Note:HS (Stock price), KS (Sport performance), CuR (Current ratio), DAR (Debt to asset ratio), NPM (Net profit margin)

Based on the statistical t test above, it can be seen that the sports performance variable has a significance
value of 0.00 or less than 0.05, so that H1 is stated to be supported. The liquidity ratio with the Current Ratio
indicator has a significance value of 0.036, so that H2 is also stated to be supported. H3, which states that the
solvency ratio has an effect on the stock price of football clubs, is also supported. Because the significance value for
the Debt to Asset Ratio is less than 0.05, which is 0.011. While the profitability ratio with the Net Profit Margin
proxy has a significance value of 0.897, which is greater than 0.05, so H4 is declared not supported.

Discussion
The results of the individual parameter significance test (t-test) also show a significance value of 0.000 or
less than 0.05 with a t-count value of 4.147. Based on the significance value of the test, it can be concluded that
sports performance has a significant effect on stock prices. Sports performance has a positive and significant effect
on the stock price of football clubs because a victory can encourage investors' emotions, especially for fans who are
sensitive to sports results in the short term. Good sports performance is also able to increase the value of players,
brands, income, and others. Winning has an impact on increasing revenue from bringing popularity to the football
club, so the players will also become popular, even more popular than their own club. This popularity will also
affect how much money the club makes, which will draw investors looking for good investment opportunities
(Pranata & Supatmi, 2016). The effect of sports performance on soccer club stock prices is in line with the results of
research by Allouche & Soulez (2015), Sarac & Zeren (2015), Rey & Santelli (2017), Hagen & Cunha (2019), and Maci et
al (2020). The previous research above states that sports performance has a positive and significant influence on the
stock price of soccer clubs but is not in line with the results of research by Nurcahyani & Bhilawa (2021). These
results are possible because of the good sports performance it is possible for the football club to experience an
increase in the value of the football club.
The liquidity ratio with the Current Ratio indicator has a significance value of 0.036, so that H2 is also
stated to be supported. The greater the liquidity ratio, the more positive the stock price will be. Having a liquid ratio
means the more likely the club is to be able to cover its short-term debt, so that in the short term, investors will
98 Hendri Prayoga, Fitra Dharma, Dewi Sukmasari, & Saring Suhendro

benefit if the soccer club earns a profit, assuming that short-term obligations will be fulfilled without allocating a
big profit. The results of this study are in line with the research of Nurcahyani & Bhilawa (2021) which states that
the liquidity ratio affects the stock price of football clubs. The extraordinary information contained in the ability of
short-term operating activities of a football club, will affect the market value of the football company itself, in this
study the market price is intended for the stock price of the football club. The ability of football clubs to be a
concern for investors, because good or bad liquidity football clubs will give an idea of whether the invested capital
will provide profits or not. So that the magnitude of the liquidity ratio of a football club will affect the interest of
the investors themselves (Prameswari, 2015). Of course, the liquidity ratio will also affect the development of the
football industry. Because the better the liquidity ratio of a football club company, the investment activity by
investors in the soccer club's shares will increase. This will encourage the development of the football industry
(Sartori, 2020).
The third hypothesis, which states that the solvency ratio has an effect on the stock price of football clubs,
is also supported. Because the significance value for the Debt to Asset Ratio is less than 0.05, which is 0.011. The
solvency ratio is certainly a concern for investors for the fate of their investments in the future. A high solvency
ratio allows a reduced interest in attracting investors to buy shares of a football club because of the risk of
bankruptcy and the failure of the football club to pay its long-term obligations. So that will affect the demand and
supply of shares of the football club. Previous studies that gave the same results were Riyandhono et al (2021),
Supriadi & Ariffin (2018), and Putri (2019) which stated that the solvency ratio with the Debt to Assets Ratio proxy
had a negative and significant effect on the stock price of football clubs. The solvency ratio is certainly a concern
for investors for the fate of their investments in the future. Before making an investment, investors must analyze
the benefits and risks of the investment (Arsita, 2021). Investors take into account the fate of their investment, with
the aim of determining the performance of the stock and how much risk investment in a football club is associated
with the company's debt. The solvency ratio has an influence on the stock price of football clubs, this illustrates
that the existence of default, bankruptcy, debt repayment is a risk that is quite considered by investors who invest
their capital in football clubs. So that this ratio will also affect the market share of the football industry it self (Rey
& Santelli, 2017).
The profitability ratio with the Net Profit Margin proxy has a significance value of 0.897, which is greater
than 0.05, so H4 is declared unsupported. Profitability ratios that have no effect on stock prices are possible
because investors do not only focus on football clubs generating high profits. High profits allow football clubs to
also have to meet high obligations and costs, so investors do not get an increase in profits as their investment
returns (Nurcahyani & Bhilawa, 2021). Investors do not only look at the internal capabilities of football clubs in
generating profits, but also focus on external factors. Other external factors that may be considered by investors are
market conditions that occur, the achievements of football clubs, inflation, and economic conditions. Riyandhono et
al (2021) explained that when Ronaldo moved from Real Madrid to Juventus, there was a high spike in Juventus
shares. In line with the research results Nurcahyani & Bhilawa (2021), Riyandhono et al (2021), and Ay & Enes (2020)
the profitability ratio has no effect on the stock price of football clubs. Contrary to the research results of Maci et al
(2020) which states that the profitability ratio has a positive and significant effect on the stock price of football
clubs. The results of this analysis indicate that the profitability ratio cannot contribute and significantly to changes
in the stock price of football clubs.

Conclusion
The purpose of this study was to obtain empirical evidence regarding the effect of sports performance and
financial performance on stock prices of football clubs listed on the Stock Europe Football 2016/2017–2020/2021
season. The results of this study are expected to provide answers to all phenomena and problems on the research
topic.
Based on the results of statistical tests from 100 research samples, it can be concluded that sports
performance has a positive and significant effect on the stock price of football clubs. The Liquidity Ratio with the
Current Ratio indicator has a positive and significant effect on the stock price of football clubs. The Solvency Ratio
with the Debt to Asset Ratio indicator has a negative and significant effect on the stock price of football clubs. The
stock price of football clubs is affected by the profitability ratio with the net profit margin proxy.
This study has limitations, namely, there is no standard provision as a reference in determining sports
performance so that indicators in the same category can be different for each researcher. There are still many clubs
that have not made an Initial Public Offering (IPO) so they have a limited sample. In addition, there are football clubs
that have good sports performance and are popular but are not listed in Stoxx Europe Football such as Real Madrid,
Barcelona, and others. Future researchers are expected to be able to choose proxies or other indicators in measuring
research variables by increasing the research period in order to obtain even better results
 ASIAN JOURNAL OF ECONOMICS AND BUSINESS MANAGEMENT 99

Acknowledgments
This research was conducted based on the process and provisions of writing scientific papers, so in the
implementation the researchers would like to thank all supervisors and colleagues so that this research can be
completed properly.

Funding
This research received no specific grant from any funding agency in the public, commercial, or not-for-profit
sectors.

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