Current issue

College of Business E-Journal 

Summer 2021 Volume XVI, Issue II

ISSN  number 2158-303X

  

I. Minority and Women Small Business Owners Need Increased Access to Equity Capital

 

ABSTRACT

The coronavirus pandemic has been disproportionately difficult for small businesses owned by women and minorities (MWBE’s). Exacerbating the problem is that MWBE’s face multiple obstacles to overcome in the process of attempting to raise equity capital, an important and necessary step to weather a business downturn in a period of recession. Congress initially addressed the equity capital challenge for MWBE’s in 2012 when it passed the JOBS Act. However, that program has turned out to be only moderately successful, and the U.S must do more to facilitate the access to equity capital for minority and women entrepreneurs, especially in light of the pandemic.

Key Words: startup capital, equity financing, crowdfunding, securities, MWBE

 

by

Kurt Stanberry, MBA, JD

Professor, Davies College of Business
University of Houston Downtown, Houston, TX 77301
stanberryk@uhd.edu; 713.221.8672
*Corresponding author

 


II. Gambling or Skill: Taxation Issues Surrounding the Daily Fantasy Sports Industry

ABSTRACT

With a waxing interest in sporting events, participants are increasingly supplementing passive viewing with a more active role.  Fantasy sports leagues have burgeoned as a result, with corresponding increases in live game attendance and media consumption across platforms. Fantasy bettors seek financial gain through the ability of athletes and the likelihood of their team performing well in a sporting event.  A major legislative concern within this industry is whether these activities are considered gambling, with its related stigma, or otherwise just a type of sporting activity.  More importantly, gambling has a long history as a major source of tax revenue within its lineage. 

This paper examines these current public policy and taxation issues that will shape the future landscape of fantasy sports. Various legislation has defined type and scope of betting that have been gradually modified to permit a larger role for individual states to develop policies. A majority of states have adopted tests that apply the degree of chance versus skill in a contest. As of 2020, sports betting has been declared legal and is presently providing tax revenue in 23 states plus Washington, D.C.  Higher levels of chance are generally deemed an illegal activity, using the 10th Amendment to the U.S. Constitution as a basis. Recent IRS opinions (July 2020) find that daily fantasy sports operators are liable for two federal excise taxes and must identify themselves by registering as a business accepting wagers.

Lower gaming taxes are associated with a proliferation of legal sports betting.  For this paper each of the following three properties must be present to be considered gambling: consideration, prize, and chance.  States have authority in defining gambling activities, with Congress regulating commerce among states.  Substantial opportunity exists in taxing online betting as a source of revenue or placing excise taxes on gambling as a method to control consumer behavior.  To the extent that federal and state governments continue debating legalized betting activities and the related taxes generated, consumer protection must focus on continued legitimacy of the environment and address addiction risk as a basis for further growth.

Keywords: Fantasy sports, gambling, sports betting, taxation.

 

by

Keith Lowe

Professor of Business Statistics
Department of Finance, Economics, & Accounting
School of Business & Industry
Jacksonville State University
Jacksonville, AL 36265
klowe@jsu.edu

 

&

 

Benjamin B. Boozer, Jr.

Associate Professor of Finance
Department of Finance, Economics, & Accounting
School of Business & Industry
Jacksonville State University
Jacksonville, AL 36265
bboozer@jsu.edu

  

  



III. Credit Market Innovations and Gross Domestic Income

 

ABSTRACT

 

ABSTRACT

In this paper I compare the effects of different credit variables on real output in the US. However, instead of using real Gross Domestic Product as a proxy for real output, I use real Gross Domestic Income. I use a VAR framework with generalized impulse response functions and generalized variance decompositions. I look at a credit aggregate and different credit spreads. I find that shocks to some credit variables can have significant effects on real output; the reaction, however, is a temporary one. Specifically, measures of the risk premium and the term premium have the most importance in explaining innovations to real Gross Domestic Income. However, in all cases the effect is a temporary one.

 

 

Keyword:        Credit, GDI, real output, VAR, credit spreads

 

by

ELLIS HEATH

Harley Langdale, Jr. College of Business Administration
Valdosta State University
1500 N. Patterson Street
Valdosta, GA 31698
ebheath@valdosta.edu

 

 

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