Does salary dispersion affect team performance in cricket? Evidence from the Indian Premier League

Srivastav Deepak (), Praveen Puram (), Rudra Sensarma and Gurumurthy Anand ()
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Srivastav Deepak: Indian Institute of Management Kozhikode
Praveen Puram: Indian Institute of Management Kozhikode
Gurumurthy Anand: Indian Institute of Management Kozhikode

No 441, Working papers from Indian Institute of Management Kozhikode

Abstract: This study examines the relationship between salary dispersion and team performance in cricket, using the Indian Premier League (IPL) data from 2008 – 2019. We employ a dynamic panel regression to test the applicability of the Equity theory and the Tournament theory in explaining team performance. Our results show that higher salary dispersion positively affects team performance, supporting the tournament theory. The study also highlights the effect of relative and overall spending by teams on their performance. The findings could be used for managing players and teams better apart from fine-tuning the strategies during player bidding. This study contributes to the sports management literature by being among the first studies to explore the impact of salary dispersion on team performance in Twenty20 cricket.

Keywords: Tournament theory; Equity theory; Twenty20 cricket; Indian Premier League; Dynamic panel estimation (search for similar items in EconPapers)
Pages: 36 pages
Date: 2021-03
New Economics Papers: this item is included in nep-spo
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