The Effect of Financial Ratios on Stock Prices of BİST-Listed Football Clubs

Abstract Manuscript type: Research paper Research aims: When the financial statements of football clubs listed in BIST are examined, it is seen that they are in financial distress. The clubs continue their activities with negative equity. Their debts are five to six times more than their assets and their continuity is uncertain. The striking financial problems of football clubs have been the motivation of the study. In this regard, the aim of this study is to determine the effect of financial ratios on the stock prices of football clubs traded in Borsa Istanbul (BİST). Design/Methodology/Approach: The stock prices and financial ratios of the listed football clubs, of Türkiye, for quarterly 2005-2021 periods were analysed using random effect analysis with the SAS 9.4 program. Data were obtained from “Stockeys” provided by Finnet Elektronik Publishing Ltd, and “isyatirim” website. Research findings: As a result, the current ratio (CR) and debt to asset (DA) ratio were found to have positive effects on stock prices. Theoretical contribution/Originality: The originality of this study is that it reveals the impact of financial analysis of football clubs, where sports performance is a priority for investors. The study also provides a critical perspective on the effects of financial ratios due to the remarkable financial structure of football clubs. Another contribution of the study is that it provides important information to both researchers and investors, due to the extensive literature review. Future researchers can further expand this research by using different financial ratios and considering different ownership structures of clubs and socioeconomic structures of board members. Practitioner/Policy implication: The findings offer valuable insights for investors, particularly those interested in the sports sector. The identification of financial ratios that positively impact stock prices can guide investment decisions.