The influence of socio-economic factors on the demand for football is under-investigated. This paper aims to offer evidence about the effects of socio-economic factors and historical success of clubs in the demand for tickets in all Brazilian League tiers. All football clubs that have participated at least once in one of the four Brazilian League Divisions from seasons 2013 to 2015 have been analyzed. The econometric approach consists of panel data ordinary least squares (OLS) regressions. Interaction terms are included to see the effect of historical success and socio-economic factors in different divisions. As a methodological contribution, an index to measure the historical success of clubs has been developed. This indicator evidences that successful clubs in the past are still driving fans attention together with current performance, increasing then seasonal attendance rates. Finally, this paper offers evidence that higher socio-economic indicators play an important role in attracting fans at lower levels as well.
The purpose of this paper is to present a comparative analysis of the contribution made by intellectual capital (IC) to company performance at company and industry levels in the Russian context. It examines the performance effect of IC using a multilevel approach.
Th e relevant expertise of both developed and developing countries demonstrates that the use of intellectual resources is critical for improving the performance of small businesses. However, previous research draws insuffi cient attention to the configuration which refl ects the interaction of intellectual resources transforming into corporate operations results. Th is study focuses on identifying direct and indirect eff ects of individual types of intellectual resources on small business performance. According to Andreeva and Garanina (2017), Molodchik and Jardon (2017), Shakina et al. (2017), intellectual capital shows a significant potential to gain competitive advantages and improve fi nancial results in Russian business environment. Given this consideration and the fact that small business plays a crucial role in the sustainable development of the economy, we put forward several hypotheses regarding the interaction between the intellectual capital components in the performance enhancement of Russian small businesses. Verifi cation of the theoretical assumptions is based on the analysis of 126 small enterprises in Perm Krai. The empirical part of the study involves the use of principal component analysis and stepwise regression. The econometric analysis data suggests that values and attitudes of managers and employees, as well as the quality of interaction with other companies, create a direct impact on the performance of small companies in question. The indirect effect in this regard is demonstrated by other components of intellectual capital, namely the quality of business processes, information system, corporate culture, knowledge and skills of employees, cooperation with suppliers. The ultimate structure of intellectual capital which allows small companies to improve their performance is consistent with the previous studies and continues the line of research on intellectual capital, small companies, and emerging markets.
The aim of this paper is to study the influence of chief executive officers' overconfidence on corporate research and development (R&D). We analyze a sample of 766 firms from the United Kingdom, France, Germany, Switzerland, Italy, Spain, and the Netherlands between 2008 and 2013. We use 3 measures of managerial overconfidence: the press coverage of chief executive officers, his/her age, and his/her experience in the industry. Our results show that the firms run by overconfident managers actually invest more in R&D expenditures, even after controlling for country, industry, and time factors. Overconfident managers not only spend more on R&D but also amplify the effect of financial determinants of R&D such as firm liquidity or profitability. Nevertheless, overconfident managers do not invest efficiently in R&D, and these expenditures can negatively affect the value of the firm.
Purpose – The purpose of this paper is to analyse the demand for tickets in the Brazilian State Championships focussing in the impact generated by the brand teams as well as the play-off matches in the demand for tickets and, consequently, in the match day revenues. Design/methodology/approach – An equations system by three-stage least square estimator is employed. The data set comprises 1,114 matches from Mineiro, Carioca and Paulista Championships over the seasons 2013-2015. Findings – All explanatory variables increase both attendance and match day revenues. However, the most important goal is the distribution of wealth found. The presence of brand teams in those championships provides a financial aid for smaller teams. Practical implications – The proposals from the mass media to exclude the brand teams and design those championships exclusively in play-off stages should not be implemented by the policymakers. On the contrary, rearranging the design of the competition with more matches between small teams and brand teams may help to all of them. Originality/value – The paper contributes to introduce the Brazilian State Championships in the sport economics literature as well as evidences the redistribution effect of wealth among clubs.
This study provides readers with new information about key drivers of performance in the emerging area of eSports. Competitive computer gaming (eSports) is becoming increasingly popular, and the number of gamers and amount of prize money is growing. We therefore explore some key country-level characteristics that may contribute to players’ success, measured as money won. We use gamers’ prize earnings aggregated by country and a hurdle model to understand the determinants of performance. The results show that a 1% increase in GDP per capita leads to a 2.2% increase in prize money per capita. Country population is not statistically significant in the outcome model. This finding may indicate that eSports talents are not uniformly distributed across the world population. Surprisingly, post-Soviet and planned or post-planned economies are more likely to participate in eSports.
This article analyses the determinants of attendees’ tourism spending at professional basketball matches during the 2012/2013 season. For this purpose, it applies a linear quantile regression and considers the effect of specific sports event variables which have rarely been assessed in this type of study. Empirical results confirm that the determinants of expenditure have a different influence depending on the spending level. Individual spending is principally influenced by the origin of the attendees as well as by several other sports factors such as the time the match takes place, the admission price, or the sporting level of the rival team. The study establishes two levels of spending to identify the different behaviors that correspond to each of the factors under study. The findings could provide a useful input into tourism strategies related to the hosting of sport events.
Purpose – This paper aims to examine how a company can build and develop its relational capital in a digital environment. It searches for proxy-indicators for digital relational capital and explores their impact on company performance. Design/methodology/approach – The paper is designed to sit in the cross-section of two concepts – Big Data and Intellectual Capital.We analyze eight metrics of digital relational capital (SEMrush rank, Trust flow, Domain authority, MozRank, Number of pages indexed in Yandex and Google, Thematic Citation Index by Yandex, Alexa Rank) and examine their impact on company performance by conducting a two-stage fixedeffect regression. The empirical part of the paper is based on a database of more than 1,000 Russian public companies from 2010-2016. Findings – The study justifies eight Big Data-based metrics that enable the estimation of the digital relational capital of a company. Empirical evidence of a significant impact on corporate performance is provided. Moreover, a U-shaped configuration of obtained relationships allows for a better understanding of the phenomenon of digital relational capital and has managerial implications. Originality/value – Companies can indirectly influence the proposed metrics. The study gives specific recommendations regarding these metrics to allow companies to optimize their performance. In addition, to the best of the authors’ knowledge, this is the first empirical research on relational capital through Big Data in Russia.
We analyse the influence of the board of directors and ownership structure on the valuation of initial public offering (IPOs) in the Spanish capital market during the period 1998–2013. After controlling for other influences such as the auditor’s reputation, the underwriter’s reputation and the level of information asymmetry, our results lend strong support for the hypothesis of the influence exerted by ownership concentration over the level of IPO underpricing. Moreover, we find a nonlinear relationship between the proportion of shares in the IPO belonging to members of the board of directors and the level of underpricing. Other IPO and firm characteristics such as the size of the offer and its structure also prove to be statistically significant. Finally, we find that the market cycle influences the valuation of IPOs, as the relationship between the market return and the initial IPO return is positive and statistically significant.
Sports events are currently associated to economic profits and tourism attraction. It is increasingly common for cities to consider local development strategies where sporting events take the center stage. This study analyzes the economic impact of the XVIII Spanish Spring Open Absolute Swimming Championship 2017. It addresses three aspects of economic impact. First, it applies a Cost-Benefit Analysis (CBA) to estimate the economic impact of the event. Moreover, it identifies and describes the socio-demographic and tourist profile of the attendees to the event. This provides a better understanding of spending pattern of the event. Finally, it identifies the presence of shadow prices for the championship, which has traditionally been free of charge. The event attracts a total of 902 attendees who spend 3.9 days on average in the host city. Average expenditure is close to 260 euros and it provides a direct economic impact of nearly 200,000 euros. Attendees to the event who were first-time visitors to the city represented 25% and 88% of these visitors indicated their intention to repeat the visit. The results of measuring an intangible aspect like shadow prices were also very revealing. A high percentage of attendees were willing to pay a fee for attending the event. Specifically, the respondents indicated the possibility of paying €7 on average per competition day. Furthermore, this paper provides new evidence on the economic impact of medium-sized events and their ability to participate in local economic development and tourism attraction.
Purpose - The purpose of this paper is to examine the relationship between export activity and firm performance for a positive impact of foreign direct investments. We also analyse two possible causes of the effect: technology transfer and financial support. The theoretical background is rooted in the resource-based approach taking into account multinational companies’ perspective and the specifics of emerging markets. Design/methodology/approach - We propose testable hypotheses based on a review of the theory. To test the hypotheses, we build a sample of over 500 Russian public manufacturing firms covering the period from 2004 to 2014 and estimate regression models. Given concerns about endogeneity, the instrumental variable approach for panel data, using GMM-estimator, is implemented. Findings - Consistent with the view that foreign direct investments generate spillover effects, our results support the positive impact of foreign ownership on the link between exports and firms’ performance. Our results underline the importance of foreign ownership: shareholders from developed countries can provide benefits to exporting companies through transferring advanced technologies and loosening financial constraints by lowering interest and raising availability of bank loans.
Originality/value - We provide new insights on the relationship between exports and firm performance. Given our focus on Russia, a market with high potential to draw foreign investments, our research sheds some light on how emerging country firms can benefit from having foreign shareholders with paying attention to geographical distribution of such investments. Specifically, through the overcoming of technological barriers and loosening of financial constraints, we show empirically that foreign capital can make up for weak local institutional infrastructure and enhance the company’s’ returns from internationalization.
Research question: Previous papers analysing broadcast demand for sports have provided general findings for the countries studied. However, each region in the same country could have different determinants. The present study aims to analyse the demand for broadcast football, emphasising the effect of the uncertainty of outcomes in Brazil’s two biggest markets: Rio de Janeiro and São Paulo.
Research methods: The dataset comprises an unbalanced panel with club fixed effects, including all 228 broadcast matches from the Brazilian League across the seasons 2013 to 2015 – 115 from the state of Rio de Janeiro and 113 from the state of São Paulo. Three linear regressions are carried out in order to determine the importance of the uncertainty of outcome, as well as the existence of win preference or loss aversion behaviours.
Results and findings: The results highlight similarities between the markets, such as higher audiences on weekdays and the strong importance of derby matches in attracting viewers. However, the findings reveal that Rio de Janeiro fans exhibit loss aversion and São Paulo supporters prefer more certain matches.
Implications: Consumer preferences may differ across a country. Hence, by understanding the diversity in fan behaviour, TV channels might more effectively adjust the matches they broadcast, increasing fan interest in these games, as well as enhancing the channels’ and the clubs’ revenues.
This paper investigates how the recent crisis of 2008 changed relations between innovation and firm performance in Western Europe. We apply a structural framework of CDM modelling, which incorporates different stages of the knowledge creation process and takes into account the complex nature of innovations. The study is based on a balanced panel data of 420 listed manufacturing firms from the U.K., Germany and France. All the information is gathered from common sources, thereby reducing subjectivity, a typical problem in the field. We found, the crisis resulted in appreciable changes in the model. The most important evidence is enhancement of the role of firm resources in the post-recession period. We also reveal larger barriers for innovations, increased uncertainty and lower state dependence in R&D engagement, product creation and economic performance. These results could indicate the ‘cleaning effect’ of the crisis, which has worsened the business environment and enhanced competition.
We use eSports data to construct an empirical model to measure the effect of diversity on team performance. Different kinds of diversities are considered, diversity of culture, diversity of language and diversity of skill. Our main results are that cultural diversity is beneficial for team performance: the absence of diversity reduces performance by 30%. However, language and experience diversity negatively affect results. Taking the difference in the results into account, we conclude that firms should not thoughtlessly maximize team diversity: different kinds of diversity have different integration and communication costs.
Abstract Purpose – This paper aims to analyse the location as root of the specificity of the sources of competitiveness in subsistence small businesses (SSBs) of wood industry to improve the situation of poverty and the different behaviour of subsistence entrepreneurs. Design/methodology/approach – The research uses an exploratory analysis based on principal components in two phases and confirmatory analysis based on partial least square techniques applied to a sample of 113 small and medium enterprises of wood industry in Oberá, a region of Argentina. Findings – The analysis evidences the use of competitiveness sources of SSBs and a double behaviour in SSBs according to subsistence threshold. Satisfactory SSBs use competitiveness sources to improve organizational and economic performance. Unsatisfactory SSBs find economic performance without relation to organizational performance. Research limitations/implications – Data are cross-sectional, and in a conjuncture of economy expansion, future research should monitor the sample of firms using panel data to assess the development of relations. Sample is in a particular region and sector, and generalizations should be done carefully. Practical implications – SSBs should raise the strategy integrating short and long term, which requires a strengthening of intellectual capital, especially in cooperation, professionalism and training. They could integrate and share a business community to develop competitive advantages of collective systemic. Originality/value – The research shows the importance of the location for the competitiveness of SSBs and provides a classification of SSBs according to their performance.
Small businesses created as a way of subsisting are very important in Latin America in alleviating extreme poverty. These businesses possibly need to innovate to compete. Innovativeness is strongly linked with intellectual capital, but the limitations of subsistence small businesses weaken this link. In particular, human capital possibly affects innovativeness, but the effect can be mediated or moderated by other components of intellectual capital. This paper uses partial least squares to study the impact of the different dimensions of intellectual capital on innovativeness as a dynamic capability in small businesses in the timber industry in an area of Latin America, and, in particular, the mediation effect among them. The results show that human capital generates relational capital. The relational capital needs structural capital to improve the innovativeness of subsistence small businesses.
According to behavioral economics, coaches may be unconsciously biased, and this could lead to deviations from rational behavior, which in turn affects team performance. We analyze the influence of a particular behavioral bias of coaches, overconfidence, on the performance of soccer teams. We use a sample of 63 coaches managing all the soccer clubs involved in the Russian Football Premier League during the four seasons between 2010 and 2013/2014. To measure overconfidence, we use a press-based metric that is generally accepted in corporate governance studies and complement it with an additional continuous measure. Coaches' overconfidence positively and significantly influences team average scores, both in the baseline regression and robustness checks. Additional testing allows us to draw conclusions regarding the inverse U-shaped relationship between overconfidence and performance. We cannot conclude that overconfidence has any effect on coaches' risk-taking that can be approximated by goals scored or allowed. We apply the well-studied methodology of overconfidence measurement to the new field of sport economics, thereby generating novel results. Although overconfidence is perceived negatively in corporate governance, we show that in sport, it is beneficial to be overconfident. The findings contribute to sport literature, more specifically to the field of performance in soccer, with results that support the importance of a coach's personal traits.
Purpose – Subsistence small businesses (SSBs) do not seek the maximum benefit; they only seek a benefit that enough satisfies their basic needs. In consequence, a dual behaviour of companies is expected and possibly the competitiveness of these companies is different. The purpose of this paper is to study the dual behaviour of SSBs and the differences about their competitive advantages. Design/methodology/approach – Data were obtained by conducting surveys with owners and managers of wood processing companies located in a region of Misiones (Argentina). The results were checked by interviews in 2012 and 2015. The research uses principal component analysis and K-means to classify the different behaviour and MANOVA analysis to study the relationships. Findings – The findings suggest two types of SSBs and show that competitive advantages are different into two groups of companies. Research limitations/implications – The data used refer to a certain period of time, with interviews in next periods. Sample is in a particular region and sector and generalisations should be done carefully. The variables are measured with subjective questions. Practical implications – The findings suggest instruments to change the strategy of unsatisfied SSBs to grow. Social implications – The growth of SSBs is very important in poorest areas. The paper suggest governments’ politics that facilitate a stable environment for improving competitiveness of SSBs. Originality/value – SSBs are very important in developing countries, but they are not sufficiently studied. The research shows the importance of satisfying principle in the competitiveness of subsistence entrepreneurs.
The purpose of this paper is to explore strategy-specific competencies with regard to intangibles and provides empirical evidence of intangible-based strategy groups for Russian companies. Additionally, the study examines the link between intangible-based strategy and company performance.
The paper uses strategic group theory and the resource-based view framework to identify similar strategic behaviour of companies by employment of intangibles. In line with the intellectual capital concept, the study provides a cluster analysis that considers four types of intangibles: human, relational, innovation and process capital. These are measured through publicly available data using principal component analysis. The empirical part of the study uses a database of 1,096 Russian public companies, which covers the period 2004–2014.
As a result, the study reveals three profiles of strategic behaviour with regard to intangibles. The majority of Russian public companies (63.5 per cent) are Generics and pursue a non-intensive intangible strategy. Only 13.3 per cent of companies constitute the intangible-intensive profile by having endowment of all intellectual resources higher than the sample average. The remaining companies (23.2 per cent) also pursue an intangible-intensive strategy with a focus on innovation capital. Intangible-intensive strategic groups outperform Generics.
The study proposes a novel intangible-based strategy continuum, which straddles two polar strategies: generic and smart. The study introduces insights to better understand the differences in performance across intangible-intensive strategies and presents a new empirical inquiry into strategic behaviour with regard to intangibles in Russia.
The determinants of sporting success in Olympic Games and international football have been analysed. Nevertheless, few studies are found on football club-level. The aim of this paper is to identify the determinants of sporting success at professional club-level studying the Brazilian League. The dataset comprises all 30 football clubs that competed in the First Division of the Brazilian League from 2010 to 2014. The econometric approach consists in an ordered logit regression. The dependent variable is the final position of each club. The findings reveal that team payroll, placement in a city with higher standard of living, the number of previous participations and a current title in the State Championships maximize the likelihood of success. However, the number of players used negatively affects the sporting performance. The peculiarities of Brazilian football are used to discuss the findings. Further papers on European football are recommended as some determinants could vary.