TY - JOUR
T1 - Buying success or redistributing payment
T2 - bidirectional causality in Korean Professional Baseball League
AU - Wang, Jye Shyan
AU - Cheng, Chih Fu
AU - Jane, Wen Jhan
N1 - Publisher Copyright:
© 2014, Eurasia Business and Economics Society.
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.
KW - Equity theory
KW - Korean professional baseball league
KW - Panel Granger causality test
KW - Salary regulation
KW - Tournament theory
UR - http://www.scopus.com/inward/record.url?scp=85028038252&partnerID=8YFLogxK
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U2 - 10.1007/s40821-014-0013-x
DO - 10.1007/s40821-014-0013-x
M3 - Article
AN - SCOPUS:85028038252
SN - 1309-4297
VL - 4
SP - 247
EP - 260
JO - Eurasian Business Review
JF - Eurasian Business Review
IS - 2
ER -