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The Effects of Equities on Team Performance for Winners and Losers in Nippon Professional Baseball: A Quantile Analysis


Author Info

  • Wen-Jhan Jane
  • Yi-Pey-Ou
  • Sheng-Tung Chen

    (Department of Economics, Shih Hsin University
    Industrial Technology Research Institute
    Department of Public Finance, Feng Chia University)

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    The paper introduces indices to measure the concepts of internal and employee equity in social psychology. The panel data of the Nippon Professional Baseball League for the period 1996-2008 and quantile regression are employed to examine the relationships between inequities induced by salary dispersions and team performance. The findings support that payroll has a positive effect on team performance, and it is stronger for winners and losers than average teams. Moreover, salary inequality based on employee equity for hitters has a significantly positive effect on team performance. The implication for team managers is that tournament-like compensation is suitable for hitters.

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    Bibliographic Info

    Article provided by GDE (Giornale degli Economisti e Annali di Economia), Bocconi University in its journal Giornale degli Economisti e Annali di Economia.

    Volume (Year): 70 (2011)
    Issue (Month): 2 (July)
    Pages: 117-138

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    Handle: RePEc:gde:journl:gde_v70_n2_p117-138

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    Related research

    Keywords: Employee Equity; Internal Equity; Professional Baseball; Quantile Regression; Tournament Theory;

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