| Summary: | 碩士 === 國立政治大學 === 會計研究所 === 99 === The research applies Data Envelopment Analysis to examine the NBA players’ efficiency performance before and after signing a new multi-year contract, and whether there exists the Contract Cycle Effect that suggested by Stiroh (2002). The research also tries to compare NBA efficiency score and DEA efficiency score to test which has a higher association with salary.
The samples selected 184 NBA players who signed a new multi-year contract from 2000 to 2011. After controlling the players’ age, seniority, extension, position and starting or not, the empirical results denote that DEA total efficiency score and the NBA efficiency per minute indicate a higher efficiency score before signing a new contract, The NBA official efficiency score and DEA technical efficiency score also reveal a negative coefficient before and after new contract singed, although the statistical test didn’t reach the significant level. The results imply that NBA players do exist the Contract Cycle Effect phenomenon that players will perform better efficiency in order to get a better contract.
The Vuong test results reveal that the official NBA efficiency score has a higher association with salary comparing with DEA efficiency score. The finding suggests that the official efficiency score is one of the major references for the NBA teams on salary arbitration.
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