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Qi Ge and Brad R. Humphreys

Companies engaging celebrity athlete endorsers or sponsoring sports teams experience negative stock price impacts if athletes engage in inappropriate behavior. Most previous research assumed homogeneity in the impact of misconduct on stock prices. The authors investigated the possibility that different types of misconduct generate different impacts on stock prices. Results from a number of event study models using 863 incidents of off-field misconduct by National Football League players revealed substantial heterogeneity in the impact of these incidents. Crimes that harmed others and incidents receiving media attention generated larger negative returns.

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Brad R. Humphreys and Michael Mondello

The authors tested the hypothesis that donations to universities vary with athletic success using a comprehensive panel data set drawn from the Integrated Postsecondary Education Data System (IPEDS) over the period of 1976–1996. Estimation of a linear reduced-form model of the determination of donations to colleges and universities indicates that postseason football bowl-game and NCAA Division I men’s basketball-tournament appearances were associated with significant increases in restricted giving and no increases in unrestricted giving to public institutions the following year, whereas only postseason basketball appearances were associated with increases in restricted giving to private institutions.

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Michael J. Mondello, Richard W. Schwester, and Brad R. Humphreys

Major League Baseball’s Tampa Bay Rays have proposed constructing a facility on the St. Petersburg waterfront. The projected cost of this stadium is $450 million, which will be financed partially by the Rays’ ownership. The remaining cost will be financed through tax revenues generated from the private redevelopment of Tropicana Field—the Rays’ current facility. Using content analysis, this article examines the public discourse regarding the proposed stadium. A pillar of controversy surrounding the stadium plan centers on opportunity-cost issues. Furthermore, in the context of the public-good argument, there is empirical evidence among bloggers that the stadium would stimulate awareness, improve the city’s image, or simply give the city a platform to showcase its amenities. This study aimed to provide a better understanding of the prevailing themes characterizing support for or opposition to this stadium plan and generate testable research hypotheses.

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Jane E. Ruseski, Brad R. Humphreys, Kirstin Hallman, Pamela Wicker, and Christoph Breuer

Background:

A major policy goal of many ministries of sport and health is increased participation in sport to promote health. A growing literature is emerging about the benefits of sport participation on happiness. A challenge in establishing a link between sport participation and happiness is controlling for endogeneity of sport participation in the happiness equation.

Methods:

This study seeks to establish causal evidence of a relationship between sport participation and self reported happiness using instrumental variables (IV).

Results:

IV estimates based on data from a 2009 population survey living in Rheinberg, Germany indicate that individuals who participate in sport have higher life happiness. The results suggest a U-shaped relationship between age and self-reported happiness. Higher income is associated with greater self-reported happiness, males are less happy than females, and single individuals are less happy than nonsingles.

Conclusions:

Since the results are IV, this finding is interpreted as a causal relationship between sport participation and subjective well-being (SWB). This broader impact of sport participation on general happiness lends support to the policy priority of many governments to increase sport participation at all levels of the general population.