Buying success or redistributing payment: bidirectional causality in Korean Professional Baseball League

Jye Shyan Wang; Chih Fu Cheng; Wen Jhan Jane

doi:10.1007/s40821-014-0013-x

Buying success or redistributing payment: bidirectional causality in Korean Professional Baseball League

Jye Shyan Wang, Chih Fu Cheng, Wen Jhan Jane^*

^*Corresponding author for this work

Department of Physical Education and Sport Sciences

Research output: Contribution to journal › Article › peer-review

2 Citations (Scopus)

Abstract

Salary payments are important to us for understanding both the relationship and the causality between salary structures and team performance in labour market theory. Using salary data from the Korean Professional Baseball League (KPBL), this paper conducts Panel Granger tests to investigate the causality between pay and performance. Our empirical results show that the causality only runs from the dispersion of salary payment to team performance, but not vice versa. Moreover, the evidence also shows that total salary does not cause team performance, and vice versa. Therefore, payrolls cannot buy wins, and wins cannot bring payrolls in the KPBL.

Original language	English
Pages (from-to)	247-260
Number of pages	14
Journal	Eurasian Business Review
Volume	4
Issue number	2
DOIs	https://doi.org/10.1007/s40821-014-0013-x
Publication status	Published - 2014 Dec 1

Keywords

Equity theory
Korean professional baseball league
Panel Granger causality test
Salary regulation
Tournament theory

ASJC Scopus subject areas

General Business,Management and Accounting
Economics, Econometrics and Finance (miscellaneous)

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title = "Buying success or redistributing payment: bidirectional causality in Korean Professional Baseball League",

abstract = "Salary payments are important to us for understanding both the relationship and the causality between salary structures and team performance in labour market theory. Using salary data from the Korean Professional Baseball League (KPBL), this paper conducts Panel Granger tests to investigate the causality between pay and performance. Our empirical results show that the causality only runs from the dispersion of salary payment to team performance, but not vice versa. Moreover, the evidence also shows that total salary does not cause team performance, and vice versa. Therefore, payrolls cannot buy wins, and wins cannot bring payrolls in the KPBL.",

keywords = "Equity theory, Korean professional baseball league, Panel Granger causality test, Salary regulation, Tournament theory",

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AU - Cheng, Chih Fu

AU - Jane, Wen Jhan

PY - 2014/12/1

Y1 - 2014/12/1

N2 - Salary payments are important to us for understanding both the relationship and the causality between salary structures and team performance in labour market theory. Using salary data from the Korean Professional Baseball League (KPBL), this paper conducts Panel Granger tests to investigate the causality between pay and performance. Our empirical results show that the causality only runs from the dispersion of salary payment to team performance, but not vice versa. Moreover, the evidence also shows that total salary does not cause team performance, and vice versa. Therefore, payrolls cannot buy wins, and wins cannot bring payrolls in the KPBL.

AB - Salary payments are important to us for understanding both the relationship and the causality between salary structures and team performance in labour market theory. Using salary data from the Korean Professional Baseball League (KPBL), this paper conducts Panel Granger tests to investigate the causality between pay and performance. Our empirical results show that the causality only runs from the dispersion of salary payment to team performance, but not vice versa. Moreover, the evidence also shows that total salary does not cause team performance, and vice versa. Therefore, payrolls cannot buy wins, and wins cannot bring payrolls in the KPBL.

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KW - Salary regulation

KW - Tournament theory

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Buying success or redistributing payment: bidirectional causality in Korean Professional Baseball League

Abstract

Keywords

ASJC Scopus subject areas

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