The Analysis of the Impact of Team Wage on Performance: An Example of Major League Baseball

• Main Authors: Liu, Wei Ting, 柳威廷
• Other Authors: Kuo, Chun Chien
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/9j79bg

碩士 === 國立臺北商業技術學院 === 國際商務系碩士班 === 102 === The team wage of professional sports has been focus of many observers. High pay companies can recruit excellent employee based on corporate management, so is professional sports teams. The team wage of the highest team is ten times more than the team wage of the lowest team of Major League Baseball in 2013. We investigate whether the team wage difference will have significant impact on team performance in MLB. We use the data of wining number, total team wage, various statistics of pitchers and batters in MLB from 1998 to 2013 to analyze the team performance. We use OLS and random effect model to analyze the effect of team wage to team performance. We find the effect of team wage on team performance is insignificant. It is possible that the team performance may not be the only consideration of paying higher team wage. Teams are willing to pay high wage to attract stars, ticket sale and expand markets.