Advanced Search
MyIDEAS: Login to save this article or follow this journal

The Causality between Salary Structures and Team Performance: A Panel Analysis in a Professional Baseball League

Contents:

Author Info

  • Wen-Jhan Jane

    ()
    (Shih Hsin University, Taiwan)

  • Gee San

    (National Central University, Taiwan)

  • Yi-Pey Ou

    (National Central University, Taiwan)

Registered author(s):

    Abstract

    This paper provides a comprehensive study of the causality between pay and performance for professional sports teams. By using the total salary payment, as well as the dispersion of salary payment of the baseball teams in Taiwan, we engage in a simultaneous regression of a Granger Causality Test for each team’s salary structures and their corresponding performance. Our empirical results show that the causality only runs from the dispersion of salary payment to team performance, and not vice versa. As such, both the tournament hypothesis, which emphasizes the effect of salary dispersion, and the Yankee paradox, which proposes the negative externality for a team with high payroll, are thus confirmed. The one-way causality results suggest that teams must rely more on internal wage adjustments, especially on the dispersion of salary, under the league with strict restrictions on the mobility of players.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.fitinfotech.com/IJSF/IJSFbackissueWVU.tpl
    Download Restriction: Full-text download requires subscription from FIT.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Fitness Information Technology in its journal International Journal of Sport Finance.

    Volume (Year): 4 (2009)
    Issue (Month): 2 (May)
    Pages: 136-150

    as in new window
    Handle: RePEc:jsf:intjsf:v:4:y:2009:i:2:p:136-150

    Contact details of provider:
    Web page: http://www.fitinfotech.com/

    Order Information:
    Web: http://www.fitinfotech.com/IJSF/IJSFbackissueWVU.tpl

    Related research

    Keywords: Equity Theory; panel Granger Causality test; salary regulation; Tournament Theory; Yankee Paradox;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Le Maux, Benoit & Rocaboy, Yvon, 2012. "A simple microfoundation for the utilization of fragmentation indexes to measure the performance of a team," Economics Letters, Elsevier, Elsevier, vol. 116(3), pages 491-493.
    2. Jane, Wen-Jhan, 2010. "Raising salary or redistributing it: A panel analysis of Major League Baseball," Economics Letters, Elsevier, Elsevier, vol. 107(2), pages 297-299, May.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:jsf:intjsf:v:4:y:2009:i:2:p:136-150. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Victor Matheson).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.