nep-spo New Economics Papers
on Sports and Economics
Issue of 2009‒01‒31
three papers chosen by
Joao Carlos Correia Leitao
Technical University of Lisbon

  1. Hotel Tax Collections and a Local Mega-Event By Dennis Coates
  2. Information Salience, Investor Sentiment, and Stock Returns: The Case of British Soccer Betting By Palomino, F.A.; Renneboog, L.D.R.; Zhang, C.
  3. Le team building et la cohésion des équipes Team building and cohesion By Joël Moulhade

  1. By: Dennis Coates (Department of Economics, University of Maryland, Baltimore County)
    Abstract: Cities compete for the opportunity to host events that draw large crowds of visitors. The argument is that these visitors bring with them lots of spending in hotels and restaurants, providing jobs for workers in the service industry, and generating sales tax revenues for the city. In many places, there is also a separate tax on hotel and motel accommodations. Indeed, taxes on accommodations are one example of jurisdictions exporting their tax burdens, as people who pay the accommodations taxes are visitors. This paper looks for the beneficial impact of a megaevent by focusing on the accommodations tax collections in and around the jurisdiction that hosts the event.
    Keywords: sports, South Carolina, NASCAR, college football, tourism
    JEL: L83
    Date: 2009–01
  2. By: Palomino, F.A.; Renneboog, L.D.R.; Zhang, C. (Tilburg University, Center for Economic Research)
    Abstract: Soccer clubs listed on the London Stock Exchange provide a unique way of testing stock price reactions to different types of news. For each firm, two pieces of information are released on a weekly basis: experts’ expectations about game outcomes through the betting odds, and the game outcomes themselves. The stock market reacts strongly to news about game results, generating significant abnormal returns and trading volumes. We find evidence that the abnormal returns for the winning teams do not reflect rational expectations but are high due to overreactions induced by investor sentiment. This is not the case for losing teams. There is no market reaction to the release of new betting information although these betting odds are excellent predictors of the game outcomes. The discrepancy between the strong market reaction to game results and the lack of reaction to betting odds may not only be the result from overreaction to game results but also from the lack of informational content or information salience of the betting information. Therefore, we also examine whether betting information can be used to predict short-run stock returns subsequent to the games. We reach mixed results: we conclude that investors ignore some non-salient public information such as betting odds, and betting information predicts a stock price overreaction to game results which is influenced by investors’ mood (especially when the teams are strongly expected to win).
    Keywords: information salience;investor sentiment;investor attention;sports betting;soccer;football;economics of sports;market efficiency
    JEL: G12 G14
    Date: 2008
  3. By: Joël Moulhade (labrii, ULCO)
    Abstract: Développer la cohésion d'une équipe, améliorer les relations entre les membres qui la composent, la rendre plus performante et plus motivée font partie des thèmes qui préoccupent souvent les dirigeants d'entreprise, d'administration ou d'association. Quel manager n'a pas rêvé d'améliorer la performance et le dynamisme de son équipe? C'est dans ce cadre que le team building prend toute sa signification, son intérêt, sa valeur, sa spécificité.
    Abstract: Developing the cohesion of a team, ameliorating the relationships between its members, making it more successful and more motivated represent a part of the main themes that often preoccupy the leaders of companies, administrations or associations. Is there any manager who did not dream of ameliorating the performance and the dynamism of his team? It is in this same framework that the team building takes all its meaning, its interest, its value, its specificity. (c) Laboratoire de Recherche sur l'Industrie et l'Innovation Université du Littoral Côte d'Opale, octobre 2008
    Keywords: Team buiding, Cohesion, Manager
    JEL: M12 Z19
    Date: 2008–09

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