The COVID-19 pandemic substantially impacted many aspects of regular life including financial markets. The increased media attention and slowdown associated with the pandemic provide the opportunity to explore how both institutional and retail traders react to an attention-grabbing event. We examine how the market responded to a unique presidential press conference including CEOs of eight publicly-listed U.S. companies addressing the U.S.’s response to the pandemic. Using the press conference on March 13, 2020, we examine the effect on the trading volatility and returns for each of the eight companies represented. We find positive abnormal returns for the companies participating in the press conference. Using the Robintrack data aggregated from the Robinhood retail trading platform and intraday TAQ data, we see that both retail and institutional trading volume increased on the press conference day. However, the increase in retail trading approximately doubled the increase in institutional trading. For the two companies with the lowest Robinhood user ownership prior to the press conference, ownership more than doubled within an hour of the press conference. Panel VAR analysis including control firms shows the press conference resulted in significant intraday returns, volume, and buy-order imbalances in participating firms’ stock.

One of the newest opportunities available to sport marketing decision-makers is branding on the game-worn jerseys of teams competing in the National Basketball Association (NBA). Given the novelty of this opportunity, research on the returns marketers may receive from such investments is scarce. This study applies the event study methodology to measure shareholder reaction to the announcements of NBA jersey sponsorships utilizing multiple financial models and event windows, with results indicating abnormal and positive return on investment (ROI). Reflective of signaling theory, the market’s reaction to announcements involving tech firms was more positive, and as expected based on the theoretical lens of agency theory, the reaction for firms with regional proximity was muted. Given that the NBA is one of several leagues that will be providing brand integration on game-worn jerseys, this study’s findings have important managerial implications for brand marketers planning investments in such opportunities.

Purpose The purpose of this paper is to examine the impact hosting the Super Bowl has on audit completion and financial reporting timeliness for companies headquartered in Super Bowl hosting cities. Design/methodology/approach Using 16 years of financial reporting data, this study uses the Super Bowl and related activities, combined with required filings during “busy season,” as a natural experiment to examine how audit firms navigate short-term, exogenously imposed but anticipated, audit team capacity constraints. Findings Companies headquartered in a city hosting the Super Bowl, during busy season, have longer audit report lags (by approximately three days, in comparison to non-hosting busy season audits) and less timely securities and exchange commission (SEC) (10-K) filings. The authors find no evidence that Super Bowl hosting affects audit fees or earnings announcement timeliness. Practical implications When confronted with anticipated capacity shocks, audit firms take longer to complete the audit, absorbing the financial costs of the delay and maintaining audit quality, resulting in less timely financial reporting. Originality/value This study demonstrates the costs of Super Bowl-related inefficiencies and contributes to our understanding of how auditors navigate capacity shocks. This study provides evidence that auditors can effectively manage business risk and continue to facilitate providing timely and accurate information to financial statement users in the face of a capacity shock.

Purpose The purpose of this study is to understand the structure and dynamics of minority equity sponsorship agreements and the motivations for organizations to go beyond traditional sponsorships by acquiring minority equity in the sponsored organization. Design/methodology/approach This paper adopts a qualitative methodology and presents interview data from key actors involved in minority equity sponsorship agreements. Findings The findings of the paper include major characteristics of minority equity sponsorship agreements including the motivations, dynamics and resources exchanged by sponsoring firms and clubs in these relationships, based on the experiences of key actors from firms, clubs and other key stakeholders, and a conceptual model for forming and maintaining these relationships. Practical implications Sponsorships are increasingly evolving into minority equity sponsorship agreements, particularly in the European market. The findings of this study assist sponsoring firms and the executives of clubs in better understanding the dynamics and stakeholder-related consequences of these relations. Originality/value The findings of this paper illustrate the differences between minority equity sponsorship agreements and both traditional sponsorships and minority equity alliances. The findings also identify major characteristics of these relationships and the interdependencies among these characteristics.

In this paper, the authors argue that the firm value implications of sport sponsorships for sponsors may depend on the competitive environment during the bidding process for different types of sponsorships. More specifically, the authors contend that the bidding environment for professional football (soccer) kit sponsorships represents a form of common value auction, while the bidding environment for corporate logo sponsorships on teams’ shirts does not. As common value auctions are prone to winner’s curse, the firm value implications should be different for kit sponsorship announcements than for shirt sponsorship announcements. Our results suggest that shareholders indeed perceive the value derived from kit and shirt sponsorships differently, resulting in the predicted distinction in their impact on sponsors’ firm value. This study sheds light on conflicting results on firm value implications of sport sponsorships in the prior literature and provides rich areas for future research.

Numerous studies have investigated the influence of sponsors on the sport organizations with whom they partner. However, rather than simply assessing the impact of a new, incremental sponsor, which should result in a net positive for the sponsored organization, we quantify and isolate the effect of resources provided upon the switch of one sponsor to another. Furthermore, the resource-based view of the firm is utilized as a theoretical lens to understand the effects of these resources on demand, the ability to recruit human capital, and organizational performance. In Study 1, we analyze 15 years of data from 98 sponsorship agreements, finding that switches provide additional resources, but do not positively impact demand, recruiting, or performance, even in subsequent years. In Study 2, we find that the financial commitment necessary to acquire a sponsorship from a competitor does not result in a corresponding increase in shareholder value for the sponsoring firm.

This study builds on the existing law and finance literature by analyzing the impact of legal systems on both the level and the sourcing of working capital. We find that stronger rule of law results in lower levels of working capital, less sourcing from retained earnings, and more sourcing from banks. Firms in common-law regimes have lower levels of working capital and finance it from banks, while firms from civil-law environments rely on retained earnings and other financial institutions for sourcing. The impact of legal origin on both the level and the sourcing of working capital is mixed.

We examine the impact of sales order backlog, an important leading indicator of firm performance, on corporate social responsibility (CSR) performance (measured as responsible and irresponsible CSR performance). We rely on the stakeholder and resource availability views of CSR to develop our hypotheses. Under the stakeholder view, we posit a positive relation between sales order backlog and CSR performance. Under the resource availability view, we posit this relationship to be negative. Our empirical evidence shows a significant positive relation between order backlog and irresponsible CSR performance, suggesting that firms with higher order backlog demonstrate lower overall CSR performance. This evidence is consistent with the resource availability view that engaging in CSR activities consumes valuable firm resources, and thus, firms with limited resources are less likely to invest in CSR initiatives. Firms with high levels of unfulfilled sales orders must focus on fulfilling those orders, and may not be able to devote resources to CSR.

Purpose - The purpose of this paper is to examine the impact of business volatility on employee performance. Design/methodology/approach - The authors use regression analysis to examine the authors' research question. Findings - The results suggest that business volatility has a significant and positive impact on employee performance. Furthermore, the authors find that the relationship between business volatility and employee performance is stronger for larger firms and firms with higher labor intensity. Originality/value - The study links and contributes to two streams of literature: employee/labor cost management from the accounting literature and business volatility from the management literature. Whether business volatility affects employee performance remains an interesting question that has not been definitively answered empirically. To the best of the authors' knowledge, this is the first empirical study that directly examines the relationship between business volatility and employee performance at the firm level.

Purpose The purpose of this paper is to examine the impact firm proximity to financial centers has on announcement returns and time to deal completion for mergers and acquisitions. Design/methodology/approach Using a data set of merger and acquisition activity from 1986 to 2014, target and acquiring firms are classified as rural or urban based on their geographic proximity to major financial centers. The impact of this proximity on short-term acquisition announcement returns and on the amount of time required to complete the transaction are tested. Findings Markets react more favorably to the acquisition of firms headquartered in a rural area, likely due to increased information advantage on the part of the acquiring firm. Furthermore, the acquisition of a rural firm requires greater time to completion. Practical implications Acquiring firms may be able to use information asymmetry to their advantage when acquiring firms located in a more rural setting with higher levels of information asymmetry. However, this requires the acquiring firm to generate an informational advantage and will also require a greater time commitment on average to complete the deal. Originality/value While prior literature has demonstrated that the distance between target and acquirer can affect acquisition returns and time to deal completion, this study adds to the literature by demonstrating that the geographic location of the target firm relative to major financial hubs can have a unique effect on mergers and acquisitions as well.

Gaining exclusive sponsorship rights to international football club apparel has become increasingly competitive, resulting in larger deal values. The first objective of this study was to analyze the effect of kit sponsorship announcements on the underlying value of sponsoring firms Utilizing event study analysis, we found that firms announcing kit sponsorships experience negative abnormal returns. This finding may not be surprising given the fierce competition for obtaining valuable, scarce marketing space and the well-known winner's curse. The second objective was to shed further light on the value of kit sponsorship deals by conducting a novel test in which we analyzed a subset of sample observations where the kit sponsorship changed to a new sponsor. We found that firms may be willing to overpay for sponsorships to pre-empt their direct competitors from obtaining valuable, scarce marketing space. Firms losing a pre-existing sponsorship to a direct competitor experience large negative abnormal returns.

Using a sample of mergers and acquisitions from 1985 to 2014, we examine the impact of proximity between target and acquirer as a measure of information asymmetry. We find geographic distance has a significant impact on acquisitions premiums and time to completion, conditional on the size of the target firm. Small targets receive lower premiums and have a faster time to completion the closer they are to their acquirer. Conversely, large targets have a slower time to deal completion the closer their proximity. We conclude geographic distance has a substantial impact on acquisitions.

Using a sample of 20 finance journals from 1985 to 2014, we develop a robust, iterative loop ranking system for journals, universities, and doctoral programs across five-year intervals. Unlike past models, our dynamic model requires minimal reliance on external rankings. New journals create an immediate impact on rankings, likely because they attract high-profile authors in early issues. Niche journals rank higher than broad-based journals outside the top five. Our results demonstrate increased productivity of international universities and nonacademic institutions relative to U.S. universities. International doctoral programs experience similar increases in graduate productivity. Over time, collaboration between authors at different institutions increases.

Purpose The purpose of this paper is to examine the extent to which dynamic pricing is utilized in North American professional sports. While industries such as airlines and travel services have employed dynamic pricing for decades, professional sports is only now starting to adopt it. Design/methodology/approach The authors survey and interview high ranking executives and managers in North American sports organizations. A total of 72 managers and executives from the four major North American professional sports leagues as well as other sport properties were surveyed. Descriptive statistics and a basic regression provide insight into perceptions v. actual practice among sports organizations. Findings While most sports organizations perceive high usage of dynamic pricing within their organization, current procedures lag. Nearly 70 percent of respondents believe that their organizations frequently or always apply business analytics to dynamic pricing, but only 30 percent update their prices daily. Fully 50 percent of organizations do not automate decision-making processes, which is a hallmark of dynamic pricing. The perception of constant use of analytics in dynamic pricing intensifies as job title increases. Originality/value As one of the initial surveys looking at the usage of dynamic pricing in North American professional sports, this study provides a glimpse into both the perception and the reality. It suggests that there is still ample room for improvement.

Purpose The purpose of this paper is to investigate the impact of market-level uncertainty on dividend and repurchase decisions. Design/methodology/approach Using a large data set over a nearly 50-year period, the author examines the choice to pay dividends and repurchase shares using logit and multinomial logit regressions. Findings Market-level uncertainty (measured by a GARCH estimate of volatility, as well as the Chicago Board Options Exchange Volatility Index) is shown to have a statistically significant impact on firms’ payout policy decisions. This impact is different for dividends and repurchases as well as for firms with differing levels of cash flows. As market uncertainty increases, firms with low cash flow levels tighten dividend policy to conserve cash while firms with high cash flow levels become opportunistic through the use of share repurchases. Practical implications The findings allow investors to better understand the connection between shifts in market-level uncertainty and corporate payout policy, specifically through the differing use of dividends and repurchases. Originality/value While prior literature on payout policy has focused on firm-level determinants, this study demonstrates that market-level uncertainty impacts firms’ payout policy decisions uniquely. Furthermore, this is, to the author’s knowledge, the first study to differentiate by relative cash flow level, demonstrating that not all cash flow levels react in the same manner.

Firms from emerging markets, including China, increasingly seek to raise capital outside of their home markets. We examine the short-term performance of U.S.-bound Chinese initial public offerings (IPOs) and find that these IPOs have significantly lower underpricing than a matched sample of U.S. counterparts. We also find that the magnitude of IPO underpricing for U.S.-bound Chinese firms is positively related to revisions in offer price.

The effect of sponsorship on the stock market returns of the sponsoring companies has been previously studied, but the internationalizing aspect of sponsorship has been overlooked. We examine returns to shareholders for firms sponsoring international football matches using an event study analysis. We find that there are cumulative abnormal returns to stockholders of sponsoring firms of international matches 10 days after the match and 20 days after the match. This finding is robust across several different event-study methods. We also find this general pattern across different professional football leagues, as well as a positive effect on returns by sponsoring high-profile football clubs. We theorize that the elapsed time until the effect on the stock price is the result of building brand awareness before a shift in the price becomes evident. These findings add nuance to the literature on sponsorship and event studies, which is almost exclusively domestic in character.