Factors that Determine the Market Value of Professional Football Players in Indonesia

Hajar Iman Adiwiyana, Iman Harymawan

Abstract


This study aims to identify the factors that determine the market value of professional football play- ers. The market value of soccer players is obtained from the official website www.transfermarkt.com which contains each professional soccer player’s prices in the transfer market. This study used 205 samples of professional football players in the Indonesian league in 2017. We analyzed this study using multiple linear regression and stepwise analysis with STATA 14 to see the factors that affect professional football players’ market value. The research results prove that age has a negative effect on the player’s market value, while assists, yellow cards, team status, and player status have a posi- tive impact on the player’s market value. On the other hand, goals, red cards, minutes played, and starting11 do not affect market value. Information about various factors that impact the market value of football players can support investment decisions in football club management. The results of this study add to the literature on human resource accounting studies, especially intangible as- sets. The character of football in Indonesia is classified as developing, even though most people are soccer fans, but it does not profit. There is no Indonesian football club that has taken the floor on the stock exchange, unlike in Europe. This study adds the variables Team Status and Player Status as a development of previous research. The determinants of market value can be used as additional information in the financial reporting of football clubs.

Keywords


Human Resource Accounting, Intangible Asset, Market Value, Football

Full Text:

PDF

References


Amir, E., & Livne, G. (2005). Accounting, valuation, and duration of football player contracts. Journal of Business Finance & Accounting, 32(3â€4), 549-586. DOI: http://dx.doi.org/10.1111/j.0306- 686X.2005.00604.x

Brommer, B. C. (2011). Does the recognition of football player contracts require extra attention? Accounting, valuation, and duration of football player contracts. A re-examination with European data. Doctoral dissertation, Master thesis Accounting. Tilburg University, Tilburg, Netherlands.

Carmichael, F., Forrest, D., & Simons, R. (1999). The labour market in association football: Who gets transferred and for how much? Bulletin of Economic Research, 51(2), 125-150. DOI: http://dx.doi. org/10.1111/1467-8586.00075

Devi, A. P. (2004). Accounting for football player. Jurnal Akuntansi dan Keuangan Indonesia, 1(1), 38-53.

DOI: http://dx.doi.org/10.21002/jaki.2004.04 (In Bahasa)

Fahrmeir, L., Kneib, T., Lang, S., & Marx, B. (2013). Regression: Models, methods, and applications.

Springer Science & Business Media.

Gulbrandsen, A. M., & Gulbrandsen, C. M. (2011). Valuation of football players: A complete pricing framework. Master’s thesis.

Herm, S., Callsen-Bracker, H. M., & Kreis, H. (2014). When the crowd evaluates soccer players’ market values: Accuracy and evaluation attributes of an online community. Sport Management Review, 17(4), 484-492. DOI: http://dx.doi.org/10.1016/j.smr.2013.12.006

Ignacio, U., Barajas, A., Kase, K., & Castillo, P. (2006). Transfer market: Analysis of variables, which determine the players: Market value. European Association for Sport Management (EASM). Conference Abstracts.

Kiefer, S. (2014). The impact of the Euro 2012 on popularity and market value of football players.

International Journal of Sport Finance, 9(2), 95-111.

Majewski, S. (2016). Identification of factors determining market value of the most valuable football players. Journal of Management and Business Administration, 24(3), 91-104. DOI: http://dx.doi. org/10.7206/jmba.ce.2450-7814.177

Morrow, S. (1997). Accounting for football players. Financial and accounting implications of ‘royal club liégois and others V bosnian’for football in the United Kingdom. Journal of Human Resource Costing & Accounting, 2(1), 55-71. DOI: http://dx.doi.org/10.1108/eb029035

Müller, O., Simons, A., & Weinmann, M. (2017). Beyond crowd judgments: Data-driven estimation of market value in association football. European Journal of Operational Research, 263(2), 611-624. DOI: http://dx.doi.org/10.1016/j.ejor.2017.05.005

Rowbottom, N. (1998). Intangible asset accounting and accounting policy selection in the football industry.

Doctoral dissertation. University of Birmingham.

Van den Berg, E. W. A. (2011). The valuation of human capital in the football player transfer market. Thesis.

Erasmus University. DOI: http://hdl.handle.net/2105/9763




DOI: https://doi.org/10.15294/jda.v13i1.26079

Refbacks

  • There are currently no refbacks.




Creative Commons License
Jurnal Dinamika Akuntansi is licensed under a Creative Commons Attribution 4.0 International License