An introduction to the challenges of distributive equity in the English Premier League

PurposeThis article provides a plain language commentary on the distributive equity structure of the English Premier League (EPL) with the aim of introducing sport business practitioners to a foundational challenge facing professional leagues as they grow financially with market opportunities, namely financial inequality between clubs.Design/methodology/approachIntroducing and discussing data from seasons 2009/10–2018/19, the article reveals that despite maintaining a consistent distribution of the EPL prize fund over time, the financial imbalance within the league has grown throughout the period.FindingsThe EPL's financial distributive equity is exacerbated by growing imparity in the acquisition of sponsorship revenues, the distribution of broadcasting revenues and the implications of policies concerning financial fair play and parachute payments, leading to a problematic differential in the talent distribution and win–wage relationship experienced by the top six teams and the remainder.Practical implicationsThe EPL's market-driven continuation of its revenue allocation policies has led to a broadening financial imbalance, in favour of the top clubs, which could paradoxically undermine the financial security of the teams and league. Sport business practitioners should be familiar with this fundamental challenge for sport leagues that accompanies financial growth.Originality/valueWhilst the percentage difference in prize fund allocation between top and bottom clubs appears minor, there is a significant financial variation across the league, primarily due to the large increase in broadcasting income. This is compounded by positive feedback via the relative dominance of the top six clubs receiving the larger share allocated to higher finishing teams.

Equity Structure, Strategic Investment Psychology, and Performance in China’s Green Economy Context

This study empirically tests the impacts of equity structure on strategic investment psychology in green affairs in R&D vs. Marketing dimensions and company performance. Based on data from Chinese high-tech industry listed companies, the empirical results show that: (1) the largest shareholder’s shareholding ratio has a positive effect on marketing investment psychology and a negative impact on R&D investment psychology, (2) other large shareholders’ shareholding ratio are positive related to R&D investment psychology; (3) R&D investment psychology has a negative effect and marketing investment psychology has a positive influence on the current performance; (4) equity counterbalance is positive related to R&D investment psychology and has a negative effect on the current performance. This study contributes to the literature of corporate governance on sustainability issue by providing a new psychological perspective. The results also provide an important guidance for the corporate governance practice in green economies.

The influence of subject heterogeneity and absorptive capacity of acquirer on innovation performance in technology-driven M&As

This study uses a sample of technological mergers and acquisitions (M&As) of A-share listed companies in the five major high-tech industries from 2012 to 2016, and conducts factor analysis to measure the heterogeneity of these enterprises in terms of financial slack resources, equity resources, and governance structure. On this basis, multivariate regression analysis is utilized to explore the influence of the acquiring firms' heterogeneity on their innovation performance, and the adjustment action of absorptive capacity between heterogeneity and innovation performance. The research results show that the slack financial resources and highly centralized equity structure of enterprises are not conducive to enterprises improving their innovation performance following a technological M&A, while the impact of governance structure on innovation performance following an M&A is similarly not significant. The empirical evidence provided offer insights and a decision reference for technological M&As of high-tech enterprises.

Research on Non-Dividend Behavior of Listed Companies

The dividends of listed companies are related to external factors such as the macroeconomic situation and the industry level of these companies. They may also be related to internal factors such as the company’s financial status, equity structure, and their development cycle. This article analyzes the non-dividend listed companies in terms of the external and internal factors; focusing on industries with more non-dividend listed companies.

Using accounting ratios to measure construction industry lag

Purpose The apparent lag between macro-economic behavior and financial implications in the construction industry is yet to be examined. The purpose of this paper is to understand the nature of the lag and the relationship between economic changes from year-to-year and the impact on the financial status of construction companies. Design/methodology/approach Correlation was made between US economic growth and construction industry financial indicators over a 28-year period. Cumulative per cent growth in US GDP was considered an independent variable, while nine financial ratios were calculated and considered dependent variables in this study. Findings The results of this study found that correlation improved when considering lag of two, three or sometimes four years after the economic event. Some financial ratios proved more sensitive than others, supporting the hypothesis of this study. Research limitations/implications The practical application of this study for construction companies is to understand how the construction industry lag impacts financial behavior. It therefore informs managerial decisions related to solvency, liquidity, equity structure and managerial practices; all of which are measured by financial ratios. Practical implications This study was intended to advance the research in this area and also to serve to strengthen industry members in their financial management of construction companies. Economic dynamics have long-lasting implications, which can be addressed through an increased focus on managing financial health. Originality/value Though the lag is intuitively known and has been studied from market perspectives, there is a lack of empirical study evaluating the impact of lag on financial key performance indicators.