Articles in this issue:

• Firm Behavior Under Conditions of Final Offer Arbitration: An Empirical Analysis of Major League Baseball’s Salary Negotiation Structure

  Jonathan R. Brown

  This paper explores the use of final offer interest arbitration (FOA) in Major League Baseball (MLB) and whether arbitrated salaries differ meaningfully from private settlements. MLB provides an excellent environment to analyze FOA because it is common practice for eligible players and their teams to announce official intended arbitration figures well in advance of hearings but ultimately privately negotiate a contract in the interim. This allows for consideration of the bounded arbitrated salary environment even when a hearing is avoided. Results reaffirm the findings of Burgess and...Read more

• Sports Sentiment and Return Differentials of Cross-Listed Firms: Evidence from Chinese A- and H-Shares

  Qinqin Wu

  Robin K. Chou

  and Jing Lu

  We explore the relationship between the Chinese Football Association Super League (CSL) game outcomes and the returns differentials of Chinese cross-listed A- and H-shares. We find that a team’s win leads to a significant rise in the next-day return differentials for locally headquartered firms. Furthermore, the win effects are more pronounced for critical games, games with high attention, and firms with low institutional investor shareholding. In contrast, the loss effects are more significant if a CSL team loses by a margin of more than 2.5 points. Additionally, sports sentiment mainly...Read more

• The Stock Market Reaction to the 2020 Tokyo Olympics: Evidence from Japanese Sponsors and Taiwanese Olympic-Related Firms

  Huei-Fu Lu

  This study aimed to examine the impact of a major sporting event, the 2020 Tokyo Olympics, on abnormal returns of Japanese sponsors and Taiwanese Olympic-related stock prices during three different periods, including the hosting announcement, the postponement in light of the COVID-19 pandemic, and the holding as scheduled. Using the event study approach, secondary data were collected to investigate the fluctuation of abnormal returns of official Japanese sponsors and Taiwanese Olympic-related stocks. The empirical evidence showed that Olympics-related news disclosures significantly...Read more

• Emotional Shocks and Performance: Evidence from the FIFA World Cup

  J. D. Tena and Jorge Tovar

  Significant events can trigger emotions affecting individuals’ performance. This paper uses granular, event-level data from the 2018 FIFA football World Cup to study how scored and conceded goals impact performance as measured by each player’s passing ability. These emotional swings allow for the study of these shocks’ influence and duration on players’ ability to pass the ball. The main result shows that conceded goals negatively impact individual performance between three and nine minutes of the trigger effect, while scored goals do not significantly impact passing ability at the...Read more