Trainer turnover & big bath accounting in the European football industry
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2021-07-21
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en
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In this thesis, the overall effect of CEO turnover (in this case coaches’ turnover) on big bath
accounting practices for both player assets and non-player assets is researched. The study investigates
a sample of 17 European stock-listed football clubs over the period 2011-2020. The model of Elliot &
Shaw (1988), modified by Pierk (2020), is used to perform the research. The results show a positively
significant relationship between forced trainer changes and write-offs on intangible assets. On the
other hand, a negatively significant relationship exists between forced trainer changes and write-offs
on tangible assets. The results indicate that a trade-off between write-offs on intangibles and tangibles
is present. Another key finding is that write-offs on intangible assets for football clubs are remarkably
higher than in other industries. The UEFA should take into account that clubs are more focused on onfield
performance rather than financial stability. Therefore, the UEFA should look at ways to assure
financial viability of clubs in the future to prevent financial distress of clubs. Besides, investors also
care about financial stability, as they would lose their money when the club goes into default.
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Faculteit der Managementwetenschappen