VOLUNTARY & MANDATORY TRANSFER DISCLOSURES OF FOOTBALL TEAMS AND BEHAVIOUR OF STOCK RETURNS: AN EVENT STUDY

We use the event study methodology to examine the stock returns’ consequences of voluntary and mandatory transfer disclosures of football teams. We analyzed the effects of voluntary disclosures by using the announcement of intent to enter into negotiations on transfer. On the other hand, to announce signing a contract is considered as a mandatory disclosure because the local regulations obliged football teams to announce the transfers of football players. The results of the study show that stock returns have parallel pattern regarding the voluntary and mandatory disclosures. However stock returns reaction to voluntary disclosures is statistically significant where this proposition is not valid for the mandatory disclosures. The findings of study provide evidence for the theory proposing that stock returns react to voluntary disclosures when the mandatory disclosures are less informative.