Title: Sponsoring an event and stock return: Vivo IPL to Tata IPL

Authors: Mohit Saini; Shallu Batra; Mahender Yadav; Vaibhav Aggarwal; Narender Verma

Addresses: Department of Commerce, Maharshi Dayanand University, Rohtak, Haryana, India ' Department of Commerce, Maharshi Dayanand University, Rohtak, Haryana, India ' Department of Commerce, Maharshi Dayanand University, Rohtak, Haryana, India ' O.P. Jindal Global University, Sonipat, Haryana, India ' Evalueserve Private Limited, Gurugram, Haryana, India

Abstract: Title sponsorship of the Indian Premier League 2022-2023 has been given to Tata Group (an Indian Corporate Giant). The main aim of this study is to investigate the impact of the event on each of the listed entities within the Tata Group and identify which among them is the most reactive to this event. The closing prices of 17 stocks and the market index were collected from the Prowess database. The event study methodology was used to study the objective. The study employed the 21 days event window and 224 days estimation window to estimate the returns. The results indicate that Tata Communication Ltd. and Indian Hotels Co. Ltd. have a significant positive abnormal return on the event day. Overall, the average abnormal return of all stocks was found to be significantly positive on the next day of the event. The findings indicate that the market was optimistic regarding the communication and hospitality segment of the Tata Group during the IPL tournament.

Keywords: Indian premier league; stock return; event study; Tata Group.

DOI: 10.1504/IJDIPE.2024.137093

International Journal of Diplomacy and Economy, 2024 Vol.10 No.1, pp.39 - 56

Received: 28 Feb 2023
Accepted: 04 Apr 2023
Published online: 01 Mar 2024 *

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