Pritha Chakravarti and Felix Boronczyk

This study quantifies the negative effects of corruption on sponsors of the Indian Premier League (IPL) and presents unbiased sponsor-linked outcomes as its results. The event study methodology was used for the purpose of measuring the reaction of the Indian shareholders to the unexpected event that was the decision of the Supreme Court of India to ban two teams and several officials from cricketing affairs for life in response to the discovery of corruption. The results of this study show there is an immediate loss in firm value for sponsors that are linked to events and teams proved to...Read more

Ajit Karnik

There have been two major auctions of the Indian Premier League (IPL) of cricket. Since 2008, three IPL tournaments have also taken place. We first estimate hedonic price equations for the auction of 2011. We find that runs scored in the shorter formats of the game, wickets taken in Test cricket, age of the player, and nationality of the player are important determinants. We investigate whether our equations suffer from a sample selection bias employing Heckman selection methods. Hedonic price equations for the auction of 2008 are also estimated using the specification used for the 2011...Read more