The financial impact of the financial fair play policy on Spanish football

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Roberto Fernández-Villarino ◽  
J. Andrés Domínguez-Gómez
Keyword(s):  
Financial Performance ◽  
Fiscal Year ◽  
Professional Football ◽  
Content Type ◽  
General Terms ◽  
Football Clubs ◽  
Before And After ◽  
The Law ◽  
Compliance With The Law ◽  
Positive Effect

PurposeThis study aims to explore how responsible corporate behaviour, specifically self-imposed financial regulatory control, might subsequently be reflected in the financial performance of companies subject to such regulation.Design/methodology/approachIn this study, the authors aim to explore how financial compliance in the form of the Economic Control Regulation (ECR) has impacted on the financial performance of professional football clubs in Spain. To this purpose, the authors adopted a quasi-experimental before and after study design. This type of design assesses the object of study before and after a specific event in order to determine whether this event has had any effects on the object. In this case, the event was the coming into effect of the ECR in the fiscal year of 2012, and the object hypothetically affected was the clubs’ economic performance.FindingsThe authors can confirm that in general terms and for the whole set of clubs analysed, the ECR has had a strong and positive effect on financial performance.Research limitations/implicationsIn this study, the authors wish to establish a link between the idea of “compliance” and that of “responsible corporate management practice”. It is not just a matter of compliance with the law. The fact of complying with certain laws could, in general terms, or from the point of view of common sense, be qualified as “responsible behaviour”. However, under the contemporary concept of corporate responsibility, compliance with the law is a behaviour that must be taken for granted. Responsibility, therefore, would entail going beyond such expected behaviour to one that exceeds the environment's expectation of the corporate actor.Practical implicationsWhat extent improvements in financial performance have also boosted social performance. Confirming such a positive effect endorses the argument that ethical improvements in corporate culture have a general effect on business sustainability in its different aspects: economic, social, environmental and in governance.Social implicationsThe authors may foresee that the culture of compliance will spread from the finance departments to other management areas. Its connection with ethical business practice is directly linked to the more complex concept of the “citizen company”. There are suggest interesting bases on which professional football clubs might move from a traditional profit-oriented company model towards a more contemporary one oriented towards relationships of integrity with the sport's environment. This study shows that the ECR has been a starting point for the development of Spanish professional football clubs towards this type of “citizen company”.Originality/valueIt was a single-sector study whose principal value lies in the verification of whether responsible economic management (the main consequence of applying the ECR) had any effects on company profits, financial results and other important indicators. In addition to fostering responsibility, this new management model involves a special innovation, as it is based on self-regulation (i.e. on regulations not imposed by national or supranational states), designed and implemented to ensure the sector's viability.

Financial performance and corporate diversification strategies in professional football – evidence from the English Premier League

2020 ◽  
Vol 10 (3) ◽  
pp. 291-315 ◽  
Author(s):  
Florian Holzmayer ◽  
Sascha L. Schmidt
Keyword(s):  
Financial Performance ◽  
Sport Management ◽  
International Diversification ◽  
Corporate Diversification ◽  
Professional Football ◽  
Content Type ◽  
Football Clubs ◽  
Diversification Strategies ◽  
Management Literature ◽  
Performance Effects

PurposeProfessional football clubs have increasingly initiated two corporate diversification strategies to enfold growth opportunities besides traditional income sources: business diversification and international diversification. Empirical findings from management and sport management literature provide inconclusive evidence on these strategies' financial performance effects, necessitating further research. The purpose of this article is therefore to investigate how both corporate diversification strategies affect the financial performance of professional football clubs.Design/methodology/approachA 15-year panel data set of English Premier League (EPL) clubs is examined, many of which have employed corporate diversification strategies. Measures for related business diversification (RBD) and unrelated business diversification (UBD) as well as international diversification are established from management literature. Based on fixed effects regression models, their effects on clubs' revenues and profitability are then examined.FindingsU-shaped effects from RBD on revenues and profitability are found, but no effects from UBD. These findings empirically support the theoretically appealing superiority of RBD over UBD and, with increasing levels of RBD, over a focused strategy in management literature. With international diversification, an inverted U-shaped effect on revenues is identified.Research limitations/implicationsDespite focusing only on the EPL, these findings provide new evidence of non-linear financial performance effects from corporate diversification strategies adding to (sport) management literature and setting the stage for future research on these strategies in professional football.Practical implicationsThese findings have significant implications for club managers' strategic growth opportunities such as new business models or geographic markets.Originality/valueThis is the first study to empirically examine the financial effects of corporate diversification strategies in the football market context.

Human capital and financial performance in professional football: the role of governance mechanisms

2018 ◽  
Vol 18 (2) ◽  
pp. 289-316 ◽  
Author(s):  
Vincenzo Scafarto ◽  
Panagiotis Dimitropoulos
Keyword(s):  
Human Capital ◽  
Financial Performance ◽  
Professional Football ◽  
Capital Investments ◽  
Governance Mechanisms ◽  
Data Set ◽  
Accounting Data ◽  
Content Type ◽  
Football Clubs ◽  
Board Representation

Purpose The main purpose of this paper is to examine the relationship between human capital investments and financial performance in the professional football industry. The authors examine this association by controlling for internal (club-level) mechanisms of governance. Specifically, as they deal with a context of highly concentrated ownership and familial control of football clubs, they posit that the degree of family board representation and a dual leadership structure exert a moderating effect on the decision to spend on playing talent. Design/methodology/approach The empirical analysis employs a fixed-effect econometric model on a panel data set of 16 Italian football clubs that spans a nine-year time period ending up with 144 firm-year observations. Findings The main novel finding of this investigation is that clubs with CEO duality and a high degree of family board representation manage to profit from investments in player contracts as opposed to clubs which lack these governance mechanisms. Research limitations/implications A clear implication is that the presence of corporate governance mechanisms at club level may be value-enhancing. In terms of policy direction, the finding makes the case that regulatory bodies should consider the imposition of governance mechanisms at club level as a means to promote actual financial discipline and a further ally to current regulations that are restricted to monitoring processes tied to accounting data. Originality/value This study attempts to explain the financial outcomes of player investments by combining insights from the mainstream governance and family business literature. Prior works in the field are restricted to testing the direct relation between player investments and performance, but fail to consider the potential moderators of this association.

Comparative analysis of QISMUT+3’s Islamic corporate social responsibility

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Agung Nur Probohudono ◽  
Astri Nugraheni ◽  
An Nurrahmawati
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Statistical Testing ◽  
Content Type ◽  
Islamic Bank ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact ◽  
Positive Effect

Purpose The purpose of this study is to analyze the impact of corporate social responsibility (CSR) disclosure on the financial performance of Islamic banks across nine countries as major markets that contribute to international Islamic bank assets (Indonesia, Malaysia, Saudi Arabia, UAE, Kuwait, Qatar, Turkey, Bahrain and Pakistan or further will be called QISMUT + 3 countries). Design/methodology/approach Islamic Social Reporting Disclosure Index (ISRDI) is being used as a benchmark for Islamic bank CSR performance that contains a compilation of CSR standard items specified by the Accounting and Auditing Organization for Islamic Financial Institutions. The secondary data is collected from the respective bank’s annual reports and it used the regression analysis techniques for statistical testing. Findings This study found that CSR disclosure measured by ISRDI has a positive effect on financial performance. Almost all ISRDI sub-major categories have a positive effect on financial performance except the “environment” subcategory. The highest major subcategory for ISRDI is the “corporate governance” category (82%) and the “environment” category (13%) is the lowest. For the UAE, Kuwait and Turkey, the ISRDI is positively affected by financial performance and the other countries on this research are not. Originality/value This study highlighted the economic benefits of social responsibility practices as a part of business ethics in nine countries that uphold the value of religiosity. Thus, the development of the results of this research for subsequent research is very wide open.

scholarly journals Effect of Pedestrian Penalty on Pedestrian Behavior in Qatar

2021 ◽  
Author(s):  
Omar Khaled Ghonim ◽  
Deepti Muley ◽  
Mohamed Kharbeche ◽  
Yousef Mohamed ◽  
Ahmed Madkoor
Keyword(s):  
Behavior Changes ◽  
Actual Behavior ◽  
Crash Data ◽  
Before And After ◽  
Twitter Account ◽  
The Law ◽  
Future Work ◽  
Positive Effect ◽  
Before And After Study ◽  
Insight Into

Crashes involving pedestrians are a major concern for authorities in many developed and developing countries. To refrain pedestrians from illegal or unsafe road behavior, authorities introduced three pedestrian penalties in the State of Qatar from August 2019. This paper assesses the awareness, perception, and adaptive intentions of the new amendment to the pedestrians’ law. A questionnaire survey, designed in three languages, was distributed online using Qatar University contacts and Twitter account of the General Directorate of Traffic at the Ministry of Interior, State of Qatar. A sample of 521 complete responses was obtained and used for statistical analysis. The results indicated that only 32 % of the respondents were aware of the law amendment before taking this survey. Further, the higher score for perception, adaptive intentions and awareness showed that the respondents were aware of the risks and the law amendment will have a positive effect on their behavior on road as pedestrians. The outcomes of the analysis show the efficacy of the law amendment. However, the actual behavior changes need to be studied by analyzing the pedestrian crash data and conducting a before and after study. Moreover, the study of the effects on pedestrians’ behavior, through empirical observations, is proposed to get insight into actual behaviors after law amendment as a part of future work on the topic.

Internationalisation and branding strategy

2020 ◽  
Vol 23 (4) ◽  
pp. 747-766 ◽  
Author(s):  
Robert E. Hinson ◽  
Ellis Osabutey ◽  
John Paul Kosiba ◽  
Frederick O. Asiedu
Keyword(s):  
Brand Equity ◽  
Developing Economies ◽  
International Markets ◽  
Professional Football ◽  
Structured Interviews ◽  
Foreign Markets ◽  
Content Type ◽  
Market Expansion ◽  
Football Clubs ◽  
English Premier League

Purpose The purpose of this study is to analyse how professional football clubs have attained success with internationalisation and branding strategies in foreign markets. Design/methodology/approach Based on an inductive approach, 27 semi-structured interviews were conducted to analyse the perceptions of Ghanaian fans of four English Premier League teams. Findings The findings of this study highlight that the strength of professional football brand equity is jointly determined by the level of brand awareness, brand loyalty and perceived quality. However, increasing competition in international markets require professional football clubs to clearly define their marketing strategies to improve how fans perceive them. Originality/value This paper is one of the few studies to use country-of-origin paradigm and signalling theory to explain football brand equity building, thereby extending the earlier work of Chanavat and Bodet (2009). Its empirical focus on Africa is also unique and provides evidence to suggest that global marketers have the opportunity to capitalise on market expansion opportunities in developing economies.

Harmony-oriented retail innovations and financial performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mónika Anetta Alt ◽  
Zombor Berezvai ◽  
Irma Agárdi
Keyword(s):  
Financial Performance ◽  
Sales Growth ◽  
Asian Countries ◽  
Human Relationships ◽  
Content Type ◽  
Research Findings ◽  
The Relationship ◽  
Positive Effect ◽  
Practical Implications ◽  
Innovation Outcomes

PurposeRecently, a growing need for harmony has been observed worldwide. Harmony is a universal value in both Western and Asian countries. This paper aims to study how the concept of harmony is reflected in the innovation of European multinational grocery retailers and how harmony-related innovations affect the financial performance of the retailers.Design/methodology/approachThe research is based on a multisource database including innovation outcomes and financial performance indicators of 17 European multinational grocery retailers in the period of 2011–2018. In sum, 1,399 innovations were identified by content analysis. The relationship between innovation outcomes and financial performance was measured by panel regression analysis.FindingsResults indicate that retailers differ in launching harmony-oriented innovations. Moreover, 40% more innovations are related to harmony with people as those related to harmony with nature. Finally, harmony-with-people innovations have a significantly positive effect on retailers' sales growth.Practical implicationsBased on the research findings, retailers can improve their sales growth by launching innovations that focus on harmony in human relationships.Originality/valueThis paper extended the concept of harmony to the field of innovations. First, the research showed how the value of harmony appears in the innovations of multinational retailers. Second, the study differentiated between harmony-with-people and harmony-with-nature innovations. Third, the findings revealed that harmony-oriented innovations contribute to retailers' financial performance.

Scoring goals in multiple fields

2017 ◽  
Vol 7 (2) ◽  
pp. 197-215 ◽  
Author(s):  
Petros Parganas ◽  
Roman Liasko ◽  
Christos Anagnostopoulos
Keyword(s):  
Team Performance ◽  
Statistical Tests ◽  
Profit Maximization ◽  
Economic Research ◽  
Professional Football ◽  
Linear Modeling ◽  
Data Set ◽  
Content Type ◽  
Professional Team Sports ◽  
Football Clubs

Purpose Professional football clubs currently strive for a number of concurrent goals, ranging from on-field success to profit maximization to fan expansion and engagement. The purpose of this paper, theoretically informed by the social penetration theory, is to analyze the economics behind such goals and examine the association between team performance, commercial success, and social media followers in professional team sports. Design/methodology/approach A data set relating to 20 European professional football clubs that combines financial (revenues and costs), sporting, and digital-reach measures for three consecutive football seasons (2013/2014 to 2015/2016) was used. In addition, to elaborate on this data in terms of a descriptive study, the study constructs a range of correlation statistical tests and linear modeling techniques to obtain quantitative results. Findings The results indicate that all the three main sources of club revenues (match-day, commercial/sponsorship, and broadcasting) are positive drivers for Facebook followers. Staff investments (staff costs) are also positively related to Facebook followers, albeit to a lesser extent, while higher-ranked clubs seem to follow a constant approach in terms of their revenues and cost structure. Originality/value This study seeks to bridge the communication and sport economic research, providing evidence that Facebook followers are part of the cyclical phenomenon of team revenues and team performance. In doing so, it initiates a debate on the relationship between the digital expansion of a football club and its sports and financial indicators.

Board evaluation in the top Nordic football clubs

2012 ◽  
Vol 2 (3) ◽  
pp. 210-224 ◽  
Author(s):  
Tor Brunzell ◽  
Sten Söderman
Keyword(s):  
Design Methodology ◽  
Business Plan ◽  
Descriptive Statistics ◽  
Board Members ◽  
Short Term ◽  
Content Type ◽  
Football Clubs ◽  
Almost All ◽  
Positive Effect

PurposeThe purpose of this paper is to study if and how the evaluation of the boards in the top Nordic male football clubs affects the boards’ composition and work.Design/methodology/approachThe study includes all the clubs in the two top divisions in each of the five Nordic countries (Denmark, Finland, Iceland, Norway and Sweden). The study makes use of a questionnaire where 66 (out of 145) chairmen answer 17 questions concerning the board composition and work on a five‐point Likert‐scale.FindingsThe responses were related to whether the board is annually evaluated or not. Descriptive statistics demonstrates that more than half of the clubs have an annual board evaluation. Most common is that the Chairman performs the evaluation himself/herself with help from designated board members; the evaluation being performed through informal discussions. A total of 44 clubs have a nominee committee. Almost all of the clubs transfer the result of the board evaluation to its nominee committee, most commonly verbally. Furthermore, results show that board evaluation has a significant positive effect on the following functions of football boards: review of business plan, strategy, objective and budget; discussion on short‐term development; discussion on long‐term development; and work efficiency.Originality/valueThe results of this study are consistent with a similar study of listed Nordic companies. The main difference between the results of the two studies is that clubs, unlike publicly listed companies, almost always perform the evaluation through internal interviews rarely using external consultants and individual anonymous questionnaires.

scholarly journals THE INITIAL IMPLEMENTATION OF ACCRUAL BASED ACCOUNTING, THE EFFECT ON PERFORMANCE AND FINANCIAL REPORTING QUALITY AT LOCAL GOVERNMENTS IN INDONESIA

2019 ◽  
Vol 11 (1) ◽  
pp. 13
Author(s):  
Rindu Rika Gamayuni
Keyword(s):  
Financial Performance ◽  
Financial Reporting ◽  
Local Governments ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Fiscal Year ◽  
Accounting Standard ◽  
Government Accounting ◽  
Before And After

Abstract: In Indonesia local government, accrual based Government Accounting Standard (GAS) was started to be mandatorily applied in 2015, so this research aims to investigate to what extent the role of accrual GAS implementation toward quality of financial reporting and financial performance especially at local governments. Population of this study is Local Governments of districts/cities in Indonesia for Fiscal Year 2014 and Fiscal Year 2015, as many as 542 local governments (before and after the implementation of accrual base).  Sampling method uses probability sampling which is cluster sampling. In this case, the population is divided based on 34 province clusters, so the number of sample obtained is 242 local governments of districts/cities in Indonesia.  The hypothesis testing uses paired t test. The object of research is the financial reporting quality and financial performance. The results of this study provide empirical evidence that there is an increase in the quality of financial reporting after the application of accrual-based accounting at local governments in Indonesia, but have not proven the existence of the increased financial performance. There is no differences in financial performance before and after accrual based accounting implementation at local governments in Indonesia. This hyphothesis  was not supported due to the application of accrual basis accounting is still in the early stages of implementation (1 year) that still have constraints in limited human resources competencies, necessary adaptations or adjustments in the process of change. Local governments in Indonesia must apply accrual based accounting because it is proven that it increases financial report quality.  However, the system implementation in the beginning period found many obstacles so it needs continuous adjustment and learning in order to reach desirable goal. There is still a debate on how important is the implementation or adoption of accrual IPSAS in many countries, including Indonesia.  In Indonesia, the implementation of accrual based Government Accounting Standard (SAP/GAS) is new mandatory since 2015. The result of this research will give contribution to the theory, that there is significant influence of implementation accrual based GAS to financial reporting quality, but no significant increase in financial performance (efficiency and effectiveness) at local government.  Therefore, this result study will be used to determine related policies about the implementation of accrual based GAS. Keywords: Accrual Based Accounting, Financial Reporting Quality, Financial Performance, Government

Philippine judiciary could stymie law on new region

2019 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Supreme Court ◽  
Direct Investment ◽  
Content Type ◽  
Autonomous Region ◽  
The Supreme Court ◽  
Before And After ◽  
The Law

Significance The law would replace the Autonomous Region in Muslim Mindanao (ARMM) with a Bangsamoro Autonomous Region in Muslim Mindanao with greater governing power and fiscal resources. President Rodrigo Duterte's government is campaigning for a 'yes' vote. A challenge to the BOL is before the Supreme Court. Impacts Violent attacks by opponents to the new region's creation are likely before and after the plebiscites. The failure to pass a 2019 budget could financially affect the plebiscite. A strong vote in favour of Bangsamoro could boost foreign direct investment into Mindanao. Duterte's push for a federal Philippines will be increasingly disassociated from the process of establishing Bangsamoro.

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