When Pep comes calling, the oil market answers The effect of football player transfer_Energy Economics_Quan Pham Minh Nguyen.pdf (1.43 MB)
When Pep comes calling, the oil market answers: The effect of football player transfer movements on abnormal fluctuations in oil price futures
journal contribution
posted on 2023-06-10, 05:31 authored by Hung X Do, Quan Pham Minh NguyenQuan Pham Minh Nguyen, Rabindra Nepal, Russell SmythWe examine the effect of player-transfers entered into by football clubs owned, or financed, by individuals who are key players in the oil market on abnormal returns in oil futures. In oil-financed football clubs, the sums expended buying players frequently far exceeds the amount received from selling players in the player-transfer market. We find that in order to finance these deficits in the player-transfer market, the owners act opportunistically by withholding the oil supply, resulting in higher abnormal oil spot returns. We also find that these spot price adjustments are reflected in abnormal returns in the futures market. The exception is when the deficit in the player-transfer market is above a very high threshold, which is typically only the case when the highest profile players in football are transferred. The high-profile transfers attract widespread media attention, making oil futures investors aware of the potential transmission from the player-transfer market to the oil market on a wide-scale, which dissipates the effect of a deficit in the player transfer market on abnormal returns in oil futures.
History
Publication status
- Published
File Version
- Accepted version
Journal
Energy EconomicsISSN
0140-9883Publisher
Elsevier BVExternal DOI
Volume
100Page range
105325-105325Department affiliated with
- Accounting and Finance Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2022-11-23First Open Access (FOA) Date
2022-11-23First Compliant Deposit (FCD) Date
2022-11-22Usage metrics
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