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

Wen-jhan Jane, Yi-Pey-Ou and Sheng Tung Chen ()

Giornale degli Economisti, 2011, vol. 70, issue 2, 117-138

Abstract: 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.

Keywords: Employee Equity; Internal Equity; Professional Baseball; Quantile Regression; Tournament Theory (search for similar items in EconPapers)
JEL-codes: J31 J33 J44 (search for similar items in EconPapers)
Date: 2011
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