The type of information that affects the asset price of a football club – an empirical analysis of Manchester United PLC

Purpose This study investigates the types of information that influence trading volume and stock returns of Manchester United. The study first examines the impact of sport-related information, both expected and unexpected, through a traditional news model. The reversed news model is designed to examine the impact of corporate governance-related information on stock market performance. Design/methodology/approach The study analyzes matches played across 12 seasons (2012/13–2023/24). Daily stock returns and trading volumes are examined alongside match results that are controlled for ex-ante expectations through betting odds. In the traditional news model, the matches are further categorized by types, venues, decisiveness, and stages of competition. The reversed news model investigates the 15 largest abnormal returns in absolute terms and identifies the impacts of company-specific corporate governance-related information. Findings Trading volume increases significantly after matches, where the highest magnitude is observed following defeats. The sentiment effect could be confirmed partially with significant asymmetric negative effects after losses and draws varying with venue, type, and stages of competitions. After controlling for expectations, the EMH is partially confirmed with negative impacts after unexpected losses and draws, and a positive reaction after unexpected wins. The findings from the reversed news model reveal that corporate governance-related company-specific announcements significantly determine the abnormal stock returns. Specifically, news about potential bidders during the process of selling the club resulted in the largest abnormal returns. Originality/value This study makes a comprehensive comparison of the impacts of sport-related and corporate governance-related information on the stock returns of Manchester United, which possesses a unique market status and global profile. The study makes concrete methodological contributions. Furthermore, it provides new insights into investor behavior and demonstrates the importance of transparency and proactive communication strategies when dealing with corporate governance announcements.