The effect of derby matches on the value of the club’s shares

Companies may raise funds by several different sources in order to continue their activities efficiently. Funds sometimes may be obtained from internal sources , sometimes may be obtained by borrowing. The management should decide the cost of capital and choose the cheaper one. Companies may sell their shares in capital markets and open to public. Football clubs recently floated their shares and this brings a big success for clubs since the have a substantial amount of Money that may be used freely. On the other hand, the value of shares for soccer teams mainly depend on the results of the games as it increases the number of fans and increases income collected during games and other incomes. This study investigates the effect of soccer game results on the value of the soccer clubs that quoted on the stanbul Stock Exchange Market (ISEM). We use an event-study approacg to test the effect and only examine the results of the derby games.