Author(s)

Hao Yang

Corresponding Author

Hao Yang

ABSTRACT

Along with the growing sports industry nowadays, the corresponding stock prices of the enterprises deserve our attention, triggering our research on the evaluation as well as valuation upon the characteristics of the stock price of enterprises among this industry. This paper selects five fore-end and back-end enterprises in the sports industry, then initially make their opening and closing prices de-noised through HP filtering to form a long-term trend; Secondly, the stock prices are estimated by applying the OLS and Tobit models. After comparing with the actual values, the stock price characteristics among the two types of enterprises are summarized; After conducting heterogeneity analysis, relevant conclusions can be drawn: (1) In terms of stock prices, the fore-end enterprises are generally lower than the back-end enterprises. (2) In terms of stock price forecasts, the fore-end enterprises own more stable stock prices and slighter forecast errors; comparably, the back-end enterprises are affected by external factors. They have larger forecast errors than the fore-end enterprises. (3) The fore-end closing price impacts both fore-end and back-end sports enterprises. It is more significant for back-end enterprises as well.

KEYWORDS

Stock valuation, sports industry, HP filtering, Tobit model