Next Article in Journal
Cross Hedging Stock Sector Risk with Index Futures by Considering the Global Equity Systematic Risk
Next Article in Special Issue
Revenue Sharing in Major League Baseball: The Moments That Meant so Much
Previous Article in Journal
A Closer Look at the Halloween Effect: The Case of the Dow Jones Industrial Average
Article Menu

Export Article

Open AccessArticle
Int. J. Financial Stud. 2018, 6(2), 43; https://doi.org/10.3390/ijfs6020043

Earnings Persistence of European Football Clubs under UEFA’s FFP

Department of Sport Organization and Management, University of Peloponnese, Sparta 23100, Greece
*
Author to whom correspondence should be addressed.
Received: 4 March 2018 / Revised: 30 March 2018 / Accepted: 13 April 2018 / Published: 17 April 2018
(This article belongs to the Special Issue Sports Finance 2018)
View Full-Text   |   Download PDF [260 KB, uploaded 3 May 2018]

Abstract

The goal of this study was to examine the predictability and persistence of earnings of the European football clubs and whether the new Union of European Football Associations (UEFA) Financial Fair Play (FFP) licensing regulation has forced clubs to produce a more predictable earnings stream. We utilized a sample of 109 European top-tier clubs over the period 2008–2016, summing up to 844 firm-year observations. Empirical evidence indicated that the cash flow component of earnings is more relevant in predicting one-year ahead earnings than accruals. This positive impact of cash flows for predicting earnings is more significant after the FFP regulation since earnings predictability has increased during that period. Moreover, the abovementioned finding is more significant for the smaller league clubs rather than the Big-5 league clubs. This finding is attributed to the fact that smaller league clubs are more in need of UEFA prize money relative to Big-5 league clubs, thus they are more incentivized to produce a more predictable earnings stream. View Full-Text
Keywords: earnings persistence; accruals; earnings predictability; European football clubs; financial fair play earnings persistence; accruals; earnings predictability; European football clubs; financial fair play
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Dimitropoulos, P.E.; Koronios, K. Earnings Persistence of European Football Clubs under UEFA’s FFP. Int. J. Financial Stud. 2018, 6, 43.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Int. J. Financial Stud. EISSN 2227-7072 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top