scholarly journals Market reactions to football match results: The effect of venues and competition types

2021 ◽  
Vol 18 (1) ◽  
pp. 55-72
Author(s):  
Apredianto Dwi ◽  
Rambu Dorkas ◽  
Huruta Dolfriandra
Keyword(s):  
Market Reaction ◽  
Investment Decisions ◽  
Efficient Markets ◽  
Portfolio Investment ◽  
Market Reactions ◽  
Football Club ◽  
Stock Market Reaction ◽  
Football Clubs ◽  
Football Match ◽  
Previous Assumption

This study seeks to investigate the stock market reaction to football match results in different venues and competition types, especially for three major football clubs: Manchester United, Juventus FC, and Borussia Dortmund. We use a parametric paired sample t-test. The findings show that investors take not only match results but also venues and competition types into consideration when making investment decisions. This study indicates the stock markets of football clubs are semi-strong efficient markets. Different market reaction to match results for each football club studied implies the importance of understanding the specific characteristics of those clubs in making investment decisions. The findings suggest the football club investors need to consider their clubs' competitive performance in different venues and competition types when making portfolio investment decisions. This study complemented the previous assumption on the importance of venues, and competition types match results in making investment decisions.

Managers' sexually-oriented behavior and firm performance: linking media reports to stock market reactions and legal risk

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amy Nicole Baker ◽  
David King ◽  
Michael Nalick ◽  
Melissa Tempio ◽  
Vishal K. Gupta ◽  
...  
Keyword(s):  
Sexual Harassment ◽  
Stock Market ◽  
Market Reaction ◽  
Market Reactions ◽  
Content Type ◽  
Stock Market Reaction ◽  
Workplace Romance ◽  
Media Reports ◽  
Stock Market Reactions ◽  
The Impact

PurposeThe goal of this study is to examine the association between managers' sexually-oriented behavior in publicly traded firms and subsequent stock market reactions. Both sexual harassment and nonharassing sexually-oriented behavior (i.e. workplace romance) are associated with negative shareholder reactions. The authors also examine factors that may alter the stock market reaction and those that may reduce the risk of lawsuit in sexual harassment cases.Design/methodology/approachInformation about incidents of sexually-oriented behavior was collected from media reports and content coded. An event study with a stock market reaction was used to measure the impact of disclosed sexually-oriented behaviors. Logistic regression was used to assess the relationship between incident characteristics and sexual harassment lawsuits.FindingsDisclosure of managers' sexually-oriented behavior is associated with a negative stock market reaction. Interestingly, the reaction was not more severe for sexual harassment disclosures compared to nonharassing behavior (i.e. workplace romance). Results also suggest that terminating a manager prior to disclosure of an event is negatively related to a harassment lawsuit.Originality/valueThe authors report this as the first study to focus on the stock market reaction of sexually-oriented harassing and nonharassing behavior of managers. This work complements research that documents the negative impact of sexual harassment on individuals by demonstrating these behaviors are associated with loss and risk at an organizational level.

scholarly journals Mediation Effects of Internal Financial Decisions and Company Performance on the Relationship of Macroeconomic Factors and Market Reactions

2021 ◽  
Vol 3 (1) ◽  
pp. 53
Author(s):  
Indarto Indarto ◽  
Djoko Santoso
Keyword(s):  
Capital Market ◽  
Market Reaction ◽  
Investment Decisions ◽  
Equation Modeling ◽  
Company Performance ◽  
Macroeconomic Factors ◽  
Market Reactions ◽  
Financial Decisions ◽  
Intervening Variables ◽  
The Capital Market

This study examines the effect of macroeconomic factors on investor reactions in the capital market with internal financial decisions and company performance as the intervening variables. Previous studies examined only the effect of macroeconomic factors on direct market reactions. The sample of this research are manufacturing companies listed on the Indonesia Stock Exchange. Structural Equation Modeling (SEM) was tested using SmartPLS. This study concludes that financial decisions and company performance are not the intervening variables between macroeconomic factors and market reactions. Macroeconomic factors do not affect the company's internal financial decisions and company performance but the market reaction. Meanwhile, the company's internal financial decisions have no effect on the company's performance and market reaction. The company's performance affects the market reaction. The results of this study prove that investors are very concerned about macroeconomic factors in making investment decisions. The dynamics of macroeconomic factors directly influence investment decisions in the capital market.

scholarly journals Stock Market Reactions to Auto Manufacturers’ Environmental Failures

2018 ◽  
Vol 38 (4) ◽  
pp. 364-382 ◽  
Author(s):  
Lincoln C. Wood ◽  
Jason X. Wang ◽  
Linh N. K. Duong ◽  
Torsten Reiners ◽  
Rikki Smith
Keyword(s):  
Stock Market ◽  
Unethical Behavior ◽  
Market Reaction ◽  
Environmental Stewardship ◽  
Innovative Technology ◽  
Market Reactions ◽  
Voluntary Standards ◽  
Stock Market Reaction ◽  
Environmental Failures ◽  
Stock Market Reactions

The automotive sector must meet strict regulations to increase mobility while reducing emissions to demonstrate environmental stewardship. Trust in the promise of a sustainable Fahrvergnügen was broken with recent scandals like Dieselgate denting the confidence of regulators and consumers. Overpromising on sustainable innovative technology resulted in unethical behavior, deceit, and failure to meet promised standards. We consider to what extent societal disapproval was evident in the stock market reaction to these events. We sampled 41 announcements (1984 to 2016) and observed a mean stock market reaction of -1.01%. There was no difference in the stock reaction in firms failing governmental vs. voluntary standards and more negative reactions for events following Dieselgate or when compensation was offered. The severity of the reaction to unethical misuse of environmental credentials should encourage maintaining promised environmental performances as a macromarketing strategy.

Market Reactions to Transparency International Reports on Corporate Anti-Corruption

2016 ◽  
Vol 16 (1) ◽  
pp. 84-99 ◽  
Author(s):  
Renata Blanc ◽  
Dennis M. Patten ◽  
Manuel Castelo Branco
Keyword(s):  
Market Reaction ◽  
Market Reactions ◽  
Transparency International ◽  
Corporate Reporting ◽  
Environmental Domain ◽  
Country Level ◽  
Stakeholder Pressure ◽  
Political Cost ◽  
Time Periods ◽  
Environmental Events

ABSTRACT In this paper, we examine the investor response to the issuance of Transparency International's (TI) 2012 and 2014 Transparency in Corporate Reporting: Assessing the World's Largest Companies reports. Building on prior studies of political cost-inducing events in the environmental domain, we anticipate a negative market reaction, although we argue that the adjustment will be less severe for firms rated as having better anti-corruption disclosure. Focusing on a sample of U.S. companies to control for country-level effects and to allow for comparison with the prior environmental-themed studies, we document a significantly negative market reaction to the first TI report issuance. Although also negative, the market reaction to the 2014 report was not statistically significant. However, we also document that, as expected, market adjustments differ significantly across subgroups based on anti-corruption disclosure in both time periods. These results hold controlling for other factors potentially influencing investor perceptions of exposure to the report issuances. In general, our results are consistent with the prior studies and indicate that the market is savvy to political cost exposures arising from non-environmental events. The findings also suggest that TI's efforts may be increasing stakeholder pressure for corporate anti-corruption performance, but we caution that further investigation of the relation between disclosure and underlying performance in the corruption domain is warranted.

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