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

Author

Listed:
  • Deepak Srivastav

    (Indian Institute of Management Kozhikode)

  • Puram Praveen

    (Indian Institute of Management Kozhikode)

  • Rudra Sensarma

    (Indian Institute of Management Kozhikode)

  • Anand Gurumurthy

    (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.

Suggested Citation

  • Deepak Srivastav & Puram Praveen & Rudra Sensarma & Anand Gurumurthy, 2021. "Does salary dispersion affect team performance in cricket? Evidence from the Indian Premier League," Working papers 441, Indian Institute of Management Kozhikode.
    • Handle: RePEc:iik:wpaper:441
    as

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    References listed on IDEAS

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    Keywords

    Tournament theory; Equity theory; Twenty20 cricket; Indian Premier League; Dynamic panel estimation;
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