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1 – 10 of 14Justin Ehrlich, Justin Perline, Joel Potter and Shane Sanders
In baseball, a run scored on offense carries the same on-field (win) value as does a run prevented on defense. Both outcomes bear the same score margin implication. This…
Abstract
Purpose
In baseball, a run scored on offense carries the same on-field (win) value as does a run prevented on defense. Both outcomes bear the same score margin implication. This presumption of unit equality is implicit in the Wins Above Replacement (WAR) measure, which treats units of offensive WAR (oWAR) and units of defensive WAR (dWAR) as perfectly substitutable toward win production. The purpose of this paper is to ask whether the salaries of Major League Baseball (MLB) players reveal such an equal valuation among MLB teams.
Design/methodology/approach
The authors examine the relationship between offensive output, defensive output and subsequent salary from free agency in MLB using a set of log-linear OLS, fixed effects regression specifications.
Findings
In general, estimated annual salary from free agency increases significantly and substantially with unit increases in a player's (prior season) wins above replacement WAR. Across specifications, the authors estimate a 42.5–43.4% increase in salary for year t for each additional unit of WAR in year t−1. The authors disaggregate WAR into offensive and defensive components (oWAR and dWAR) and estimate a 52.4–53.3 (4.8–7.2)% increase in salary for each additional unit of oWAR (dWAR).
Originality/value
The efficiency of the baseball labor market has been studied previously with mixed results. The novelty of the present study is its treatment of inputs not as positions or individual players but as the underlying offensive and defensive win production of players. The authors estimate free agency salary returns to (contract season) oWAR and dWAR in MLB to establish whether (to what extent) a salary premium for offensive output exists within MLB.
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Joel Potter and Justin A. Ehrlich
Since recent research has found that offensively oriented players receive a salary premium, the current study recognizes this observed premium might exist because offense is worth…
Abstract
Purpose
Since recent research has found that offensively oriented players receive a salary premium, the current study recognizes this observed premium might exist because offense is worth more in terms of revenue generation. Given the popular sports saying, “Offense sells tickets, defense wins championships,” the authors quantify whether offense really does sell more “tickets” than defense in the NBA.
Design/methodology/approach
Using NBA team revenue data as well as team offensive and defensive win shares, the authors estimate several econometric specifications to test if teams generate more revenue for offensive wins compared to defensive wins. The authors also employ a multi-year free agency study to identify if NBA players receive more compensation for offensive production than they do for defensive production.
Findings
The authors find no statistical difference in revenue generation from offense compared to defense. The authors confirm these findings both before and after revenue sharing. These results are also robust to alternative specifications. Therefore, the authors conclude that fans do not prefer offense to defense in terms of their spending. Contrary to previous research, the authors find no evidence of an offensive premium paid to NBA players.
Originality/value
Based on their findings, offensively oriented players should not receive a salary premium. The clear implication for team decision makers is that offensive production should be compensated at a similar rate as defensive production. Since the authors do not find evidence of an offensive premium for offensive production, their research suggests a likely labor market equilibrium in the NBA for both profit-maximizing and win-maximizing teams.
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Justin Andrew Ehrlich and Joel M. Potter
Sports economists have consistently found that winning positively impacts team revenue fans prefer to allocate their entertainment dollars to winning teams. Previous research has…
Abstract
Purpose
Sports economists have consistently found that winning positively impacts team revenue fans prefer to allocate their entertainment dollars to winning teams. Previous research has also found that fans do not have a preference for how their team wins. However, this research ignores the significant variability in revenue that can exist between teams with similar attendance figures. The authors contribute to the literature by testing whether profit maximizing teams should pay different amounts for different types of production by estimating the marginal revenue product of a win due to offense, defense and pitching.
Design/methodology/approach
Using data from the 2010–2017 Major League Baseball seasons and an Ordinary Least Squares-Fixed Effects approach, the authors test whether a unit of offensive, defensive and pitching production generates differing amounts of team revenue both before and after revenue sharing. The authors then test if team Wins Above Replacement is a good approximation of actual wins while accounting for the previously observed nonlinear relationship between wins and revenue.
Findings
The authors found that marginal revenue product estimates in the postrevenue sharing model for mowar, pwar and dwar are nearly identical to each other. Further, after predicting prerevenue sharing, the authors find that fans have no preference for mowar, pwar or dwar play styles.
Originality/value
The findings illustrate that team decision-makers appear to be acting irrationally by paying more for offense than they do for defense. Thus, the findings suggest that team decision-makers should value defensive wins and pitching wins at the same rate as offensive wins on the free agent market.
Justin Ehrlich, Shankar Ghimire and Shane Sanders
Revenue sharing is ubiquitous among North American professional sports leagues. Under pool revenue sharing, above-average revenue teams of a league effectively transfer revenues…
Abstract
Purpose
Revenue sharing is ubiquitous among North American professional sports leagues. Under pool revenue sharing, above-average revenue teams of a league effectively transfer revenues to below-average revenue teams. Herein, the authors find and prove that a league will vote into policy a pool revenue sharing arrangement if and only if mean team revenue is greater than presharing median revenue, where this condition is equivalent to the presence of positive nonparametric skewness in a league’s distribution of team revenues. This represents a median voter theorem for league revenue sharing.
Design/methodology/approach
The authors consider the case of revenue sharing for the National Football League (NFL), a league that pools and equally shares national revenues among member teams.
Findings
The authors find evidence of positive and significant nonparametric skewness in NFL team revenue distributions for the 2004–2016 seasons. This distribution is observed amid annual majority rule votes of League owners in favor of maintaining the incumbent pool revenue sharing model (as opposed to no team revenue sharing). Distribution of revenues – namely the existence of outlying large market NFL teams – appears to consistently explain the historical popularity of NFL revenue sharing.
Originality/value
The median voter theorem uncovered in the case of NFL applies to all professional sports leagues and can be used predictively as well as descriptively.
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Rodney J. Paul, Justin Andrew Ehrlich and Jeremy Losak
Purpose of the study is to further expand insights into how weather impacts attendance at sporting events. With the NFL having only eight home games a year per team, it is more of…
Abstract
Purpose
Purpose of the study is to further expand insights into how weather impacts attendance at sporting events. With the NFL having only eight home games a year per team, it is more of an event than other North American sports. We explore this in terms of how sensitive fans are to weather, by not only looking at traditional factors, but also other weather variables available through Accuweather. In addition, the authors explore team success, outcome uncertainty and other factors as determinants of demand.
Design/methodology/approach
The method includes Tobit model of attendance in terms of percent of capacity in the National Football League. Model includes factors such as outcome uncertainty, team success, etc. but mainly focuses on weather. Weather factors studied include traditional variables such as temperature and precipitation, and also includes cloud cover, barometric pressure, wind speed and humidity. Different model specifications are included to explore results. Key findings allow for differences between games played outdoors versus indoors.
Findings
In terms of control variables, team success, new stadiums and stadium age play a significant role in attendance in terms of percentage of capacity. Outcome uncertainty does not appear to be important, and fans desire the opposite when the home team is an underdog. The main results concern the weather. When only traditional weather variables are included, precipitation plays a key role. With further expansion of the weather variables, it appears that cloud cover offers some additional information beyond precipitation. In addition, barometric pressure plays a minor, but statistically significant role as it relates to attendance in terms of capacity.
Research limitations/implications
Including deeper and richer weather data helps to further explain attendance at sporting events. With the NFL, this may be limited by it being such as event due to the scarcity of games in a season. In addition, the weather variables are not truly independent, although they are not as correlated as may be anticipated on the surface. Use of different types of weather variables in models of attendance may help to deepen our understanding of factors influencing consumer decisions. These factors may play larger roles in sports with wider variance in attendance during the season.
Practical implications
The practical implications are that other weather-related variables besides temperature and precipitation may offer insight into consumer decisions related to attendance at sporting events. Cloud cover gives insights into anticipated poor weather in addition to it directly leading to less of a sunny day to be outdoors at an event. Barometric pressure has been shown to influence headaches and joint pain and may also influence consumer decisions to venture out to sporting events.
Social implications
As data becomes more widely available in general, it's possible to add additional insights into factors influencing various forms of decision-making. In this study, we show that more information on weather can shed insights into consumer decisions as it relates to attending events such as sports. These decisions likely differ based upon whether the event is held outdoors or indoors. With more entertainment choices as substitutes, it is important to identify key factors which influence consumer decisions to help better structure events in the future.
Originality/value
Weather variables beyond temperature and precipitation are included in a Tobit model for NFL attendance using percentage of capacity as the dependent variable. These weather variables are cloud cover, wind speed, humidity, and barometric pressure. Cloud cover and barometric pressure were found to have some significant effects on percentage of capacity. When included, precipitation itself is no longer found to be significant, but precipitation interacted with games played in domes retains statistical significance as there are key differences between games held outdoors versus indoors.
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Justin Andrew Ehrlich, Shankar Ghimire, Maroula Khraiche and Mian Farrukh Raza
The purpose of this paper is to analyze how the coronavirus disease 2019 (COVID-19) countermeasures will affect the financing of the North American leagues. In particular, we…
Abstract
Purpose
The purpose of this paper is to analyze how the coronavirus disease 2019 (COVID-19) countermeasures will affect the financing of the North American leagues. In particular, we focus on the missed revenue from gate receipts for the Big Four leagues.
Design/methodology/approach
The authors forecast the 2020 revenue for each of the four major leagues under two scenarios: (1) expected revenue under the normal conditions of fans in attendance and (2) expected revenues in the absence of fans due to the countermeasures in place. Then, the authors calculate the loss in gate receipts as a difference in the revenue under fans and no-fans scenarios.
Findings
Based on the current estimates, the combined financial loss of the clubs from NFL, MLB, NBA and NHL is expected to be above 6.8bn dollars in gate receipts alone.
Practical implications
The findings are useful to the league management to prepare for the suboptimal financial situation.
Originality/value
To the best of our knowledge, this is the first study that explores the effect of the COVID-19 pandemic across the major league sports leagues in North America.
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Matthew Johnson and Justin Woodard
Undergraduate leadership courses are becoming increasingly important venues to promote civic engagement. Despite their prominence, the nature of civic engagement in leadership…
Abstract
Undergraduate leadership courses are becoming increasingly important venues to promote civic engagement. Despite their prominence, the nature of civic engagement in leadership courses has not been examined systematically. This study examined 77 introductory undergraduate leadership courses and the role of civic engagement in these courses. Results indicate that civic engagement components are not widely utilized, and when they are part of the curricula, their implementation and design vary. Recommendations for improving undergraduate leadership curricula are offered.
Ebina Justin M.A. and Manu Melwin Joy
The three objectives served by this review are to provide readers a limpid insight about the topic performance management (PM), to analyse the latest trends in PM literature and…
Abstract
Purpose
The three objectives served by this review are to provide readers a limpid insight about the topic performance management (PM), to analyse the latest trends in PM literature and to illustrate the theoretical perspectives. It would be fascinating for the practitioners and researchers to see the latest trends in the PM system, which is not yet covered in previous reviews. The study covers the historical and theoretical perspectives of human resource management practices. We also try to unveil some of the theoretical debates and conflicts regarding the topic.
Design/methodology/approach
We reviewed 139 studies on PM published within the last 20 years (2000–2020). The method used here is the integrative review method. The criteria used to determine studies are articles from peer-reviewed journals regarding the PM system published between 2000 and 2020. The initial search for studies was conducted using an extensive journal database, and then an intensive reference-based search was also done. Each selected article was coded, themes were identified, and trends for every 5 years were determined. All the articles were analysed and classified based on the methodology used to identify qualitative and quantitative studies.
Findings
The review concludes that PM literature's emphasis shifted from traditional historical evaluations conducted once or twice a year to forward-looking, feedback-enriched PM systems. By segregating the studies into 5-year periods, we could extract five significant trends that prevailed in the PM literature from 2000 to 2020: reactions to PM system, factors that influence PM system, quality of rating sources, evaluating the PM system and types of the PM system. The review ends with a discussion of practical implications and avenues for future research.
Research limitations/implications
It is equally a limitation and strength of this paper that we conducted a review of 139 articles to cover the whole works in PM literature during the last 20 years. The study could not concentrate on any specific PM theme, such as exploring employee outcomes or organizational outcomes. Likewise, the studies on public sector and non-profit organizations are excluded from this review, which constitutes a significant share of PM literature. Another significant limitation is that the selected articles are classified only based on their methodology; further classification based on different themes and contexts can also be done.
Originality/value
The study is an original review of the PM literature to identify the latest trends in the field.
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Anne Honey, Katherine Boydell, Nathan Clissold, Francesca Coniglio, Trang Thuy Do, Leonie Dunn, Candice Jade Fuller, Katherine Gill, Helen Glover, Monique Hines, Justin Newton Scanlan, Barbara Tooth and Darren Wagner
This paper aims to explore the use of lived experience research in peer work.
Abstract
Purpose
This paper aims to explore the use of lived experience research in peer work.
Design/methodology/approach
A suite of user-friendly and engaging lived experience research resources was introduced to consumers by peer workers. In-depth interviews were conducted with 33 consumer participants and five peer workers about their experiences. The data were analysed using qualitative content analysis.
Findings
The role of the peer workers appeared critical in ensuring that participants, despite their varied needs, preferences and backgrounds, derived optimum benefit from each resource. Features in resource delivery that promoted a positive experience included presenting the resources in the context of an existing relationship, providing clear explanations, going through resources together, encouraging reflection, taking enough time; and flexible delivery. Peer workers viewed the resources as potentially useful in their everyday peer work and as a valuable addition to their peer work toolkit.
Practical implications
The benefit of lived experience research to consumers is likely to be optimised by supportive and thoughtful delivery of the resources. Peer workers have the skills and are in an ideal position to do this. Bringing lived experience research to consumers provides peer workers with a potentially unique and helpful approach for supporting and promoting recovery and is congruent with their overall practice.
Originality/value
Lived experience research has the potential to benefit consumers directly but is rarely brought to their attention. This paper is the first to examine the potential role of peer workers in introducing learnings from lived experience research to consumers.
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Leon Schjoedt and Justin B. Craig
Given the nature of entrepreneurship, a domain-specific self-efficacy scale should pertain to venture creation, be unidimensional, and be developed and validated using nascent…
Abstract
Purpose
Given the nature of entrepreneurship, a domain-specific self-efficacy scale should pertain to venture creation, be unidimensional, and be developed and validated using nascent entrepreneurs – persons for whom self-efficacy may be most important. Extant measures employed in entrepreneurship research do not meet all these criteria. The purpose of this paper is to develop and validate a unidimensional entrepreneurial self-efficacy (ESE) scale based on samples of nascent entrepreneurs.
Design/methodology/approach
Data from a sample of nascent entrepreneurs and items from PSED I were used to develop and assess the validity of a new ESE scale. To further establish scale validity, a comparison group from PSED I along with a sample of nascent entrepreneurs from PSED II were employed.
Findings
A unidimensional three-item self-efficacy scale for assessing a person’s belief that s/he can create a new business successfully is developed and validated using samples of nascent entrepreneurs and a control group.
Research limitations/implications
The scale offers opportunity to enhance research-based assessment using a parsimonious, reliable, and valid unidimensional measure of ESE. The scale may enhance future research findings, as well as promoting reconsideration of past research findings, on many issues in the entrepreneurship literature.
Originality/value
This research uses a sample of nascent entrepreneurs to provide a new three-item scale for assessment of ESE that is parsimonious, valid, and unidimensional.
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