Please use this identifier to cite or link to this item: https://ir.iimcal.ac.in:8443/jspui/handle/123456789/3287
Title: Shareholders’ reaction to ethical image of sports teams: an event study in the Indian Premier League
Authors: Jaikumar, Saravana
Pingali, Viswanath
Virmani, Vineet
Keywords: Corporate image
Corporate reputation
Ethics
Indian Premier League
Event study
Issue Date: Dec-2019
Publisher: Indian Institute of Management Calcutta, Kolkata
Series/Report no.: Vol.46;No.4
Abstract: Using event study analysis on a sports team and parent firm in the Indian Premier League, we show that investors react adversely to: (1) unethical but legal activity that may have a positive impact on the firm’s value and (2) unethical and illegal activity that does not necessarily impact the day-to-day performance of the firm. We use the novel sample-quantiles test to analyze the events in a ‘single-firm single-event’ context. Results suggest that investors are sensitive to and care about the ethical image of the sports team and parent firm. Further, when the parent firm’s core function is unrelated to the sport, the performance of the team may not have a significant impact on the firm’s valuation. We also make a broader contribution wherein we provide direct evidence linking unethical activities with negative valuation, while ruling out the rent-seeking explanation.
Description: Saravana Jaikumar, Indian Institute of Management Calcutta, M-310, NAB, D H Road, Joka, Kolkata, 700104, India; Viswanath Pingali & Vineet Virmani, Department of Economics, Indian Institute of Management Ahmedabad, Ahmedabad, India
p.283-300
Issue Editor – Manisha Chakrabarty
URI: https://doi.org/10.1007/s40622-019-00230-9
https://ir.iimcal.ac.in:8443/jspui/handle/123456789/3287
ISSN: 0304-0941 (print version) ; 2197-1722 (electronic version)
Appears in Collections:Issue 4, December 2019

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