International Journal of Financial Studies

Research

18 pages, 348 KiB

Open AccessArticle

The Other Side of the “League of Stars”: Analysis of the Financial Situation of Spanish Football

by Rudemarlyn Urdaneta-Camacho, Juan Carlos Guevara-Pérez, Emilio Martín Vallespín and Néstor Le Clech

Int. J. Financial Stud. 2023, 11(1), 3; https://doi.org/10.3390/ijfs11010003 - 22 Dec 2022

Cited by 4 | Viewed by 3383

This paper analyses the effectiveness of the financial control system implemented by the Spanish professional football League in 2015 as a tool to improve the governance of clubs in the first and second divisions as well as its probable impact on competition. Classic [...] Read more.

This paper analyses the effectiveness of the financial control system implemented by the Spanish professional football League in 2015 as a tool to improve the governance of clubs in the first and second divisions as well as its probable impact on competition. Classic financial ratios are used to analyse the financial situation of the clubs both before and after the implementation of the Regulation, as well as during the first season affected by the COVID-19 pandemic. Next, the Herfindahl index is calculated to measure the concentration in the distribution of the main funding sources and is incorporated as a dependent variable in a regression model. Although a cause–effect relationship is not certain, the results suggest that the economic control measures imposed by LFP have contributed to improving the financial situation of Spanish football in the short term, but may promote imbalances between clubs that undermine the sustainability of the current management model and, therefore, of the competition system. Unlike in other sectors, the football business requires more competition to maximise profits. In this context, it would be advisable to reach agreements between clubs to weaken the bargaining position of footballers. The paper shows the effect of the intervention of a regulatory body, in this case, LFP, in the functioning of a competitive market. Full article

(This article belongs to the Special Issue Financing Sport and Leisure: Contemporary Issues and Prospects)

18 pages, 4827 KiB

Open AccessArticle

Management Accounting Practices in the Hospitality Industry: The Portuguese Background

by Filipa Campos, Conceição Gomes, Lucília Cardoso and Luís Lima Santos

Int. J. Financial Stud. 2022, 10(4), 88; https://doi.org/10.3390/ijfs10040088 - 28 Sep 2022

Cited by 1 | Viewed by 3713

Abstract

Background: Despite the increase in tourism revenues, management in the hospitality industry faces constant challenges for profit maximization. In this way, the aim of this study is to analyze management accounting (MA) research applied to the Portuguese hospitality industry, identifying all the practices [...] Read more.

Background: Despite the increase in tourism revenues, management in the hospitality industry faces constant challenges for profit maximization. In this way, the aim of this study is to analyze management accounting (MA) research applied to the Portuguese hospitality industry, identifying all the practices mentioned by authors studying the same theme in the rest of the world. Methods: fifty-two studies were obtained and used between 2010 and 2021 for data assessment through bibliometric review, which involved both quantitative and qualitative methods of analysis. To achieve the objectives, studies were selected according to the MA practices identified by several authors for the global hospitality industry. Results: the results highlight the importance of increasing research on MA practices in the hospitality industry to empower management and smooth out the differences between their use. Currently, the emphasis is on hotel ratios and indicators, budgeting, and benchmarking. Conclusions: The adoption of MA practices is decisive for the success of hotel companies. This study evidenced the increasing use of some hotel MA practices over the years and made it possible to assess the development of these practices in Portugal, since to date no other author has produced a bibliometric review on this topic. Full article

(This article belongs to the Special Issue Financing Sport and Leisure: Contemporary Issues and Prospects)

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26 pages, 3628 KiB

Open AccessFeature PaperArticle

CSR in Professional Football in Times of Crisis: New Ways in a Challenging New Normal

by Severin J. S. Oeckl and Stephen Morrow

Int. J. Financial Stud. 2022, 10(4), 86; https://doi.org/10.3390/ijfs10040086 - 22 Sep 2022

Cited by 4 | Viewed by 6715

Abstract

While corporate social responsibility (CSR) activities are well-established among football clubs, COVID-19 challenged clubs’ capacity and commitment to continue delivering in times of crisis. Focusing on Scottish Professional Football League (SPFL) Premiership clubs and their charitable foundations, we examined challenges presented by restrictions [...] Read more.

While corporate social responsibility (CSR) activities are well-established among football clubs, COVID-19 challenged clubs’ capacity and commitment to continue delivering in times of crisis. Focusing on Scottish Professional Football League (SPFL) Premiership clubs and their charitable foundations, we examined challenges presented by restrictions and limited resources and how these impacted the decision making of CSR managers, as well as their prioritisation of projects undertaken. Qualitative research methods were applied in a two-step process. A content analysis drawing on publicly available resources provided a holistic overview of the CSR landscape in Scottish football. Subsequent semi-structured interviews with CSR managers of four clubs’ foundations offered detailed insights into crisis response. We found that resource limitations resulted primarily in operational rather than financial difficulties. To remain functional and consistent with their motives, foundations initiated new ways to address target groups’ social needs. Specifically, delivery shifted towards direct help and short-term support. While foundations continued to benefit from being associated with the parent football club, autonomy from the club was a critical success factor intensifying stakeholder relationships and community links. COVID-19-related disruptive factors resulted in more rapid decision making and greater empowerment of operational staff. Lessons learned have potential implications for CSR management post-pandemic. Full article

(This article belongs to the Special Issue Financing Sport and Leisure: Contemporary Issues and Prospects)

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19 pages, 1026 KiB

Open AccessArticle

The Financial/Accounting Impact of FFP on Participating in European Competitions: An Analysis of the Spanish League

by Alberto Calahorro-López, Melinda Ratkai and Julio Vena-Oya

Int. J. Financial Stud. 2022, 10(3), 81; https://doi.org/10.3390/ijfs10030081 - 16 Sep 2022

Cited by 2 | Viewed by 5486

Abstract

This paper analyses the impact of Financial Fair Play (FFP) on clubs’ finances and on the relationship between them and clubs’ sporting outcomes in the Spanish league. To this end, financial ratios and accounting variables obtained from the clubs’ own annual accounts, published [...] Read more.

This paper analyses the impact of Financial Fair Play (FFP) on clubs’ finances and on the relationship between them and clubs’ sporting outcomes in the Spanish league. To this end, financial ratios and accounting variables obtained from the clubs’ own annual accounts, published from 2004 to 2019, are analysed, and the Mann–Whitney test is used to describe which differences are significant. The objective is threefold: firstly, we describe the financial/accounting structures of Spanish league football clubs, showing how both their financial statements and ratios have evolved after the application of this law, providing evidence of whether FFP is an adequate tool to guarantee the long-term viability and sustainability of football clubs, as intended by the UEFA. Secondly, we show the relationship between financial/accounting performance and sporting results. Thirdly, the paper looks at whether FFP has impacted the gap between the top clubs and the rest. The results show that, after the implementation of FFP, clubs’ financial/accounting health has improved, and a change in their efficiency in this regard can be observed. Although FFP is a tool that achieves the objective for which it was created, the possibility that the gap between the elite clubs and the rest may be increasing should not be ignored. Full article

(This article belongs to the Special Issue Financing Sport and Leisure: Contemporary Issues and Prospects)

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16 pages, 999 KiB

Open AccessArticle

Recurring Rural Destination Sport Events: A Study on Participants’ Direct Spending

by Eugenia Tzoumaka, Stella Leivadi and Kyriaki (Kiki) Kaplanidou

Int. J. Financial Stud. 2022, 10(3), 78; https://doi.org/10.3390/ijfs10030078 - 7 Sep 2022

Cited by 2 | Viewed by 3029

Abstract

The current study explores direct spending profiles of sport event tourists in a very small rural destination as an alternative to the multiplier effect economic impact studies. Sport event tourism has been used as an economic engine tool by a variety of destination [...] Read more.

The current study explores direct spending profiles of sport event tourists in a very small rural destination as an alternative to the multiplier effect economic impact studies. Sport event tourism has been used as an economic engine tool by a variety of destination sizes but has been neglected for small rural destinations, where people arrive from various distance radiuses to participate in this central activity for the place. Data were collected from participants at a small-scale recurring mountain running event. An online survey instrument was sent to the participants after the event. Participants reported on their daily and total expenditures regarding accommodation, meals and other tourist spending. The results revealed that the participants who responded to the survey spent on average about EUR 163 for accommodation, EUR 205 for meals and about EUR 38 for other tourist spending, such as souvenirs. Respondents from closer radius, spent less on average, approximately EUR 156, EUR 383 and EUR 26 for the respective spending categories. Rural destinations counting on hosting sport events for economic boosts in poorly economic areas witness considerable financial gains for the regions via the estimation of the more feasible direct spending calculations. Full article

(This article belongs to the Special Issue Financing Sport and Leisure: Contemporary Issues and Prospects)

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18 pages, 608 KiB

Open AccessArticle

Unravelling Factors Influencing Firm Performance: Evidence from the SMEs in Tourism Industry

by Sarminah Samad

Int. J. Financial Stud. 2022, 10(3), 77; https://doi.org/10.3390/ijfs10030077 - 7 Sep 2022

Cited by 5 | Viewed by 4798

Abstract

The global business scenario seems to be gloomy due to the economic uncertainty caused by the COVID-19 pandemic. The COVID-19 pandemic has impacted many economic sectors and a country’s national GNP, including the tourism industry. The question is whether the influencing factors for [...] Read more.

The global business scenario seems to be gloomy due to the economic uncertainty caused by the COVID-19 pandemic. The COVID-19 pandemic has impacted many economic sectors and a country’s national GNP, including the tourism industry. The question is whether the influencing factors for firms involved in the tourism industry, especially in developing countries, ensure their future survival. The main aim of this paper is to examine the role of internal resources and external environmental factors on the firm performance of small–medium enterprises (SMEs) in the tourism industry, with a specific focus on SME hotels. Based on a survey carried out among hotel owners or key managerial staff in Saudi Arabia and using partial least squares (PLS), the study aimed to attain the objective of this study. Results from the statistical analysis indicate that both internal and external environmental factors have a positive impact on the performance of SME hotels. The results also revealed a more significant impact from the external environmental factors in influencing firm performance than internal resources. Implications, limitations, and recommendations for future scientific investigation are put forward. Full article

(This article belongs to the Special Issue Financing Sport and Leisure: Contemporary Issues and Prospects)

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18 pages, 391 KiB

Open AccessArticle

Key Strategic Decisions and Their Influences on the Management and Success of the Bank of America Chicago Marathon and the Marathon Valencia Trinidad Alfonso

by Juan L. Paramio-Salcines and Ramón Llopis-Goig

Int. J. Financial Stud. 2022, 10(3), 74; https://doi.org/10.3390/ijfs10030074 - 30 Aug 2022

Cited by 2 | Viewed by 3165

Abstract

City marathons have evolved and grown exponentially in type and popularity, in their managerial complexity, and in terms of their financial impact on their host cities and the attraction of corporate sponsors. Most of the research on city marathons has focused on evaluating [...] Read more.

City marathons have evolved and grown exponentially in type and popularity, in their managerial complexity, and in terms of their financial impact on their host cities and the attraction of corporate sponsors. Most of the research on city marathons has focused on evaluating their broad economic, urban, tourist, social, sporting, and symbolic effects on host cities. However, less attention has been paid to analyzing key strategic decisions that could account for the evolution and growth of specific marathons and their influences on their management and success. This article, which addresses the cases of the Bank of America Chicago Marathon and the Marathon Valencia Trinidad Alfonso, examines those key strategic decisions that have been taken from their inaugural first editions to present and how effective they have been as regards the management and success of both races. Results show that the international success of both events –in terms of sporting participation, performance, and economic impact– is closely related to critical key decisions taken to improve the design and management of the event; the synergies between the political, business and sporting spheres that the organizational leadership of both races has favored their implementation and, as a consequence, the support received from sponsors. This factor has not only provided both races with financial stability, but it has also contributed to improving how both marathons are managed. Full article

(This article belongs to the Special Issue Financing Sport and Leisure: Contemporary Issues and Prospects)

21 pages, 869 KiB

Open AccessArticle

Board Gender Diversity and Cash Holdings: Empirical Evidence from the European Sport and Leisure Sector

by Panagiotis E. Dimitropoulos and Konstantinos Koronios

Int. J. Financial Stud. 2021, 9(4), 64; https://doi.org/10.3390/ijfs9040064 - 26 Nov 2021

Cited by 12 | Viewed by 3480

Abstract

The scope of this study is to examine the impact of board gender diversity on corporate cash-holding decisions within the European sport and leisure sector. A sample of 125 unique firms was selected for the period from 2008 to 2019, and analysis was [...] Read more.

The scope of this study is to examine the impact of board gender diversity on corporate cash-holding decisions within the European sport and leisure sector. A sample of 125 unique firms was selected for the period from 2008 to 2019, and analysis was performed using panel fixed-effects regressions. Empirical evidence documented that the higher the number of women serving on the board of directors, the higher the level of cash the firm holds. This result is attributed to the critical mass theory of governance, suggesting that boards having at least two women directors are associated with higher cash holdings compared to firms with one or no women directors. Additionally, gender diversity leads to increased cash holdings for firms with lower governance quality, suggesting that women on boards perform a monitoring role within those firms with the most severe agency problems. The results remain robust after several sensitivity tests controlling for potential endogeneity among the variables and the model’s functional form. Full article

(This article belongs to the Special Issue Financing Sport and Leisure: Contemporary Issues and Prospects)

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