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Article
Publication date: 9 May 2020

Konstantinos Koronios, Antonios Travlos, John Douvis and Andreas Papadopoulos

The present study is an initial attempt to assess the impact of motivators and constraints on individual's intention for sport media consumption. The advancement of sport…

Abstract

Purpose

The present study is an initial attempt to assess the impact of motivators and constraints on individual's intention for sport media consumption. The advancement of sport media consumption has been underlined by the academic literature during the past few years. In fact, one of the most conspicuous concerns that experts in the sport industry face nowadays is the fans' preference to stay home and watch sport events. The objective of this research is to determine the impact of motivations and constraints for individuals' sport media consumption intentions.

Design/methodology/approach

A quantitative method was used for the purpose of this study, and a sum of 1,704 fulfilled questionnaires were obtained and analyzed by means of SPSS and AMOS

Findings

According to the results, internal and external motivators such as attachment to team, achievement, social, drama, role model and promotion observed to have a considerable impact on participants' consumption intention. Moreover, results pointed out a significant impact of structural and intrapersonal constraints on consumption intention.

Originality/value

The aim of the present research was to analyze the link between the constraints of spectator purposes and actual media consumption. In addition, there is an examination of generation-based factors among the spectators within the scope of possible contrasting aspects, a variable which has not been examined in any previous studies until now.

Details

EuroMed Journal of Business, vol. 15 no. 2
Type: Research Article
ISSN: 1450-2194

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Article
Publication date: 10 July 2017

Antonios K. Travlos, Panagiotis Dimitropoulos and Stylianos Panagiotopoulos

The purpose of this paper is to examine the migration of foreign football players that participated in the elite football championship in Greece and the impact of this…

Abstract

Purpose

The purpose of this paper is to examine the migration of foreign football players that participated in the elite football championship in Greece and the impact of this migratory channel on the athletic success of the football clubs.

Design/methodology/approach

The study analyzed a database of all migrant and local athletes that participated in the professional Greek football championship over the period 2001-2013 and performed descriptive and regression analyses.

Findings

The regression analyses revealed a positive and significant statistical relation between the investment in foreign talents and the position of the clubs in the championship; however, this impact was more intense for foreign athletes after the formation of the Greek Super League (SL) in 2007 but on the contrary native athletes seem to contribute less to the athletic success than their foreign counterparts.

Practical implications

The findings indicated that valuable resources where spent after SL formation for the acquisition of foreign well-trained athletes. Therefore, this study corroborated arguments in previous research that a basic reason for foreign player migration in football is the increased revenues accrued from the media and sponsors. The study also provided useful policy implications for football managers for improving their decisions on this matter.

Originality/value

The present study fills a gap in the empirical literature and contributes significantly on the ongoing debate about the international athletes’ migration and its impact on athletic success.

Details

Sport, Business and Management: An International Journal, vol. 7 no. 3
Type: Research Article
ISSN: 2042-678X

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Article
Publication date: 1 June 1991

Robert L Conn, Karen E. Lahey and Michael Lahey

This paper extends the merger pricing model associated with Larson‐Gonedes to the general question: how well does the premium developed from the pricing model forecast the…

Abstract

This paper extends the merger pricing model associated with Larson‐Gonedes to the general question: how well does the premium developed from the pricing model forecast the securities market reaction of the actual merger? Based on a sample of 91 common stock mergers, shareholders in participating firms incur wealth losses about half the time but the magnitude of the gains outweighs the losses such that statistically significant gains are reported for both buyers and sellers. Removal of market wide price movements further increases the gains to shareholders. However, the premium consistently overstates the gain obtained by acquired firms and bears no systematic relationship to the gains registered by shareholders of acquiring firms. Financial analyses of mergers have focused almost exclusively on mergers as “events” with resultant measurements in abnormal returns surrounding the merger announcement/consummation to shareholders, and occasionally bondholders, in both buying and selling firms. Recent reviews of these studies by Halpern (1983), Jensen and Ruback (1983), and especially Roll (1986) stress the tentativeness of the findings and the ambiguity of their interpretation. The common feature of all this analysis has been on the ex post valuation of the merger event by the securities market from an informational content perspective. Alternatively, these studies have evaluated indirectly whether the price premium paid in an acquisition exceeds, equals, or is less than the market's valuation of the net present value of the merger, and how the spoils/losses are distributed between acquirers and acquirees. But never is the bid premium itself determined and then compared to the market's reaction upon public announcement. As Roll argues, the merger process involves three steps: “First, the bidding firm identifies a potential target firm; second, a ‘valuation’ of the equity of the target is undertaken…; third, the ‘value’ is compared to current market price… If value exceeds price, a bid is made…” Roil (1986, p. 198). This paper links the price premium offered in mergers to the market's reaction to the news of the merger, or alternatively, it compares Roll's steps two and three. The merger pricing model used is the exchange ratio determination model developed by Larson and Gonedes (1969) and applied to mergers by Conn and Nielsen (1977). The pricing model, commonly cited in finance texts (eg. Copeland and Weston (1988, pp. 757–763), has the advantage of being deterministic and thus provides a direct measure of the bid premium subject to a pareto optimal wealth constraint for shareholders in both buying and selling firms. The principal question this paper asks is: Does the price premium provide a consistent, unbiased forecast of the market's reaction? This is an important question from both the bidding firms' and target firms' perspectives for several reasons. First, the terms of the negotiated merger may signal important information to the securities market regarding the degree of agency costs in the merging firms. For example, an excessively high negotiated price for the target may indicate either the bidder has inept management or management insulated from shareholder interests. Thus, the terms of a merger may reflect not only the participants' expectations regarding the merger itself, but also be influenced by existing — although previously unknown — agency costs. The signalling information contained in merger announcement may obviously mask the expectational information, creating ambiguity in interpretation of market reaction. Second, distribution of the market reaction for buyers and sellers is important not only to participating firms' shareholders, but also to the effectiveness of the market for corporate control. A perfectly competitive merger market assures that merger premiums equal the expected value of the increased market values of merging firms. Thus, divergences between premiums and subsequent market reactions may have important implications for assessing the degree of competitiveness in the merger market, and hence, the effectiveness of mergers as a disciplinary force in the market for corporate control. Finally, the adequacy of ex ante merger pricing models remains an unexplored issue. Using an improved methodology, the Larson and Gonedes (LG) model is expanded to adjust for market wide movements in PE ratios; thus, merger specific influences on wealth positions are more clearly focused upon in contrast to the earlier work by Conn and Nielsen (1977). The earlier finding by Conn and Nielsen that approximately one half of mergers sampled in the 1960s failed to meet the pareto wealth constraint for participating firms is therefore re‐examined with an improved methodology and more recent sample of mergers occurring through 1979. The paper is organised as follows. Section I reviews and critiques the Larson‐Gonedes merger pricing model. Section II describes the empirical methodology and sample. Section III presents the empirical results and Section IV concludes with a summary.

Details

Managerial Finance, vol. 17 no. 6
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 12 February 2018

Carlo Migliardo and Antonio Fabio Forgione

The purpose of this paper is to investigate the impact of ownership structure on bank performance in EU-15 countries. Specifically, it examines to what extent shareholder…

Abstract

Purpose

The purpose of this paper is to investigate the impact of ownership structure on bank performance in EU-15 countries. Specifically, it examines to what extent shareholder type and the degree of shareholder concentration affect the banks’ profitability, risk and technical efficiency.

Design/methodology/approach

This study uses a sample of 1,459 banks operating in EU-15 countries from 2011 to 2015. It constructs a set of continuous variables capturing the ownership nature, the concentration and their interactions, and estimates an instrumental variable random effect (IV-RE) model. In addition, a panel data stochastic frontier analysis is conducted to estimate the time-varying technical efficiency for profitability and costs.

Findings

The empirical analysis shows that bank performance is affected by shareholder type. When regressed against the entrenchment behavior of the controlling owner hypothesis, banks with large-block shareholders are more profitable, less risky and more profit efficient. Further, ownership concentration reverts the negative effect related to the institutional, bank and industry ownership.

Research limitations/implications

The results support the hypothesis that concentrated ownership helps to overcome agency problems. They also confirm that managerial involvement in banks’ capital enhances a bank’s profit and its volatility.

Originality/value

To the best of the authors’ knowledge, this is the first study to consider the ownership nature, the concentration and their interaction using continuous variables, which allows for more precise inferences. The results provide new evidence that bank profitability, cost efficiency and risk are affected by the type of direct shareholders.

Details

Corporate Governance: The International Journal of Business in Society, vol. 18 no. 3
Type: Research Article
ISSN: 1472-0701

Keywords

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Article
Publication date: 11 June 2019

Antonio D’Amato and Angela Gallo

This paper aims to analyze the relationship between bank institutional setting and risk-taking by exploring whether board education and turnover are drivers of the risk…

Abstract

Purpose

This paper aims to analyze the relationship between bank institutional setting and risk-taking by exploring whether board education and turnover are drivers of the risk propensity of cooperative banks compared to joint-stock banks.

Design/methodology/approach

Based on a comprehensive data set of Italian banks over the 2011-2017 period, this paper examines whether these board characteristics affect the risk propensity of cooperative and joint-stock banks. Bank risk is measured by the Z-index, profit volatility and the ratio of non-performing loans to total gross loans.

Findings

The findings show that cooperatives take less risk than joint-stock banks and have lower board turnover and education. Furthermore, this study finds that while board education mediates the relationship between the cooperative model and bank risk-taking, there is no evidence for board turnover. Thus, the lower educational level of cooperative directors contributes to explaining the lower risk-taking of cooperative banks.

Implications

The findings have several implications. In terms of the more general policy debate, the results point to the need to strengthen the governance model for both joint-stock and cooperative banks while supporting the view that a more ad hoc perspective on the best models and practices for each type of institutional setting would be preferable. In particular, the study reveals how board education’s effects on bank risk-taking should be carefully monitored.

Originality/value

Through a mediation framework, this study provides empirical evidence on the relationship between bank institutional setting (by distinguishing between cooperative and joint-stock banks) and risk-taking behavior by exploring the underlying mechanisms at the board level, which is novel in the literature.

Details

Corporate Governance: The International Journal of Business in Society, vol. 19 no. 4
Type: Research Article
ISSN: 1472-0701

Keywords

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Article
Publication date: 1 August 2016

Reza Yaghoubi, Mona Yaghoubi, Stuart Locke and Jenny Gibb

This paper aims to review the relevant literature on mergers and acquisitions in an attempt to provide a comprehensive account of what we know about mergers and which…

Abstract

Purpose

This paper aims to review the relevant literature on mergers and acquisitions in an attempt to provide a comprehensive account of what we know about mergers and which parts of the puzzle are still incomplete.

Design/methodology/approach

This literature review consists of three key sections. The first part of this paper summarises the literature on the cyclical nature of mergers referred to in the literature as merger waves. The second section reviews the causes and consequences of takeovers; it first reviews the causes, or drivers, of acquisitions, while focusing on the fact that acquisitions happen in waves and then reviews the consequences of takeovers, with a predominant focus on the impacts of mergers on the economic performance of acquirers. The third part of the review summarises the theories, as well as previous empirical studies, on determinants of announcement returns and post-acquisition performance of combined firms.

Findings

Merger activity demonstrates a wavy pattern, i.e. mergers are clustered in industries through time. The causes suggested for this fluctuating pattern include industry- and economy-level shocks, mis-valuation and managerial herding. Market reaction to announcement of acquisitions is, on average, slightly negative for acquirer stocks and significantly positive for target stocks. The combined abnormal return is positive. These findings have been consistent over several decades of investigation. Prior research also identifies a number of factors that are related to performance of acquisitions. These factors are categorised and reviewed in five different groups: acquirer characteristics, target characteristics, bid characteristics, industry characteristics and macro-environment characteristics.

Originality/value

This review illustrates a number of issues. Prior research is heavily biased towards gains to acquirers and factors that affect these gains. It is also biased towards finding sources of value creation through mergers despite the fact that several theories suggest that mergers can be value-destroying. In fact, value destruction is often attributed to managers’ self-interest (agency problem) and mistakes (hubris). However, the mechanisms through which mergers destroy value are rarely addressed. Aside from that, the possibility of simultaneous creation and destruction of value in acquisitions is not often considered. Finally, after several decades of investigation, a key question is not completely answered yet: “What are the sources of value in mergers and acquisitions?”

Details

Studies in Economics and Finance, vol. 33 no. 3
Type: Research Article
ISSN: 1086-7376

Keywords

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Article
Publication date: 2 May 2017

Prity Kumari and Jamini Kanta Pattanayak

In the shadow of global financial crisis, practice of earnings management can be hazardous for the growth and development of an economy, especially for a developing…

Abstract

Purpose

In the shadow of global financial crisis, practice of earnings management can be hazardous for the growth and development of an economy, especially for a developing economy like India. This empirical study is performed to analyse the presence of earnings management practices in Indian public and private commercial banking industry. This study also aims at developing a framework for the three-way relationship existing between the variables of corporate governance, earnings management practices and firm performance.

Design/methodology/approach

Data have been collected for a period of 11 financial years (2003-2013) from Prowess (Centre for Monitoring Indian Economy) 4.14 database. A bank-based accrual model has been used for calculating earnings management practices. OLS regression has been used for analysing degree of interdependence among variables of corporate governance, earnings management practices and financial performance.

Findings

The analysis supports the fact that there is the existence of income increasing earnings management practices in Indian commercial banks. It is also observed that corporate government practices (viz. board characteristics, audit practices and performance-based remuneration) basically work as restricting variables for earnings management practices. It is evident from the analysis that market-based firm performance variables (viz. PE ratio, yield and profit after tax) are significantly related to earnings management and corporate governance system.

Practical implications

The finding of this study will help in monitoring and controlling fraudulent earnings management practices existing in Indian commercial banks.

Originality/value

This study is the initial research about the presence of earnings management practices in Indian commercial banks.

Details

Journal of Financial Crime, vol. 24 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

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Article
Publication date: 7 March 2016

Reza Yaghoubi, Mona Yaghoubi, Stuart Locke and Jenny Gibb

This paper aims to review the relevant literature on mergers and acquisitions in an attempt to provide a comprehensive account of what we know about mergers and which…

Abstract

Purpose

This paper aims to review the relevant literature on mergers and acquisitions in an attempt to provide a comprehensive account of what we know about mergers and which parts of the puzzle are still incomplete.

Design/methodology/approach

This literature review consists of three key sections. The first part of this paper summarises the literature on the cyclical nature of mergers referred to in the literature as merger waves. The second section reviews the causes and consequences of takeovers; it first reviews the causes, or drivers, of acquisitions, while focusing on the fact that acquisitions happen in waves and then reviews the consequences of takeovers, with a predominant focus on the impacts of mergers on the economic performance of acquirers. The third part of the review summarises the theories as well as previous empirical studies on determinants of announcement returns and post-acquisition performance of combined firms.

Findings

Merger activity demonstrates a wavy pattern, i.e. mergers are clustered in industries through time. The causes suggested for this fluctuating pattern include industry and economy-level shocks, mis-valuation and managerial herding. Market reaction to announcement of acquisitions is, on average, slightly negative for acquirer stocks and significantly positive for target stocks. The combined abnormal return is positive. These findings have been consistent over several decades of investigation. The prior research also identifies a number of factors that are related to performance of acquisitions. These factors are categorised and reviewed in five different groups: acquirer characteristics, target characteristics, bid characteristics, industry characteristics and macro-environment characteristics.

Originality/value

This review illustrates a number of issues. Prior research is heavily biased towards gains to acquirers and factors that affect these gains. It is also biased towards finding sources of value creation through mergers, despite the fact that several theories suggest that mergers can be value-destroying. In fact, value destruction is often attributed to managers’ self-interest (agency problem) and mistakes (hubris). However, the mechanisms through which mergers destroy value are rarely addressed. Aside from that, the possibility of simultaneous creation and destruction of value in acquisitions is not often considered. Finally, after several decades of investigation, a key question is not completely answered yet: “What are the sources of value in mergers and acquisitions?”

Details

Studies in Economics and Finance, vol. 33 no. 1
Type: Research Article
ISSN: 1086-7376

Keywords

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Article
Publication date: 9 January 2017

Kathleen Marshall Park and Anthony M. Gould

Merger waves have typically been viewed through the prism of either corporate strategy or macro-economics. This paper aims to broaden debate about factors that cause – or…

Abstract

Purpose

Merger waves have typically been viewed through the prism of either corporate strategy or macro-economics. This paper aims to broaden debate about factors that cause – or are associated with – mergers/merger waves over a 120-year period. It ascribes “personalities” to six distinct waves and draws an overarching conclusion about how merger architects are viewed.

Design/methodology/approach

Databases and interviews are used to piece together detail about CEOs associated with six distinct and recognized merger-waves during a 120-year focal period. The study establishes and defends, a priori, principles for interrogating data to get a sense of each wave-era’s corporate personality/idiosyncrasy. For each era, two exemplar CEO-profiles are presented and – through inductive-reasoning – held out as representative.

Findings

Distinct personalities are associated with six merger waves. Each wave is given a summary anthropomorphic description which conveys a sense that it may be viewed as the non-rationale expression of aggregate and historically distinct CEO behavior within a circumscribed timeframe.

Research limitations/implications

The work’s key limitation – explicitly acknowledged – is that it amassed data/evidence from disparate historical sources. However, the authors have developed and defended principles for addressing this concern.

Practical implications

Improved investment analyses, in particular. The work prefigures formal establishment of a new variable-set impacting share-price prediction.

Social implications

The paper offers a perspective on how psychological/personality-related variables impact management decision-making, creating something of a bridge between mostly non-overlapping research disciplines.

Originality/value

The paper broadens debate about how and why merger waves occur. It removes the exclusive analysis of merger waves from the hands of economic historians and strategic management theorists.

Details

Journal of Management History, vol. 23 no. 1
Type: Research Article
ISSN: 1751-1348

Keywords

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