Performance Management Commons^™

Boom & Bust: The Perils Of Guaranteed Long Term Contracts. Evidence From Ops100 Performance Over The Contract Cycle, Heather M. O'Neill

Business and Economics Faculty Publications

This study focuses on panel data of 256 MLB free agent hitters under the 2006-2011 Collective Bargaining Agreement (CBA) to demonstrate that hitters, on average, increase their offensive production, measured by OPS100, during the last year of their contract and subsequently underperform the first year of the newly signed long term contract. The contract year phenomenon arises from the incentive to land a lucrative guaranteed contract for players not intending to retire. Signing a long term guaranteed contract creates an incentive to shirk (underperform) the first year of the new contract because performance and pay become unlinked and the need …

Do Hitters Boost Their Performance During Their Contract Years?, Heather M. O'Neill

Business and Economics Faculty Publications

Each season, baseball fans and journalists alike identify which players are in the final years of their contracts because a lot rides on how the players produce in their “contract year.” Will a player boost his effort and performance in an effort to improve his value and bargaining power? Or will he crumble under the pressure? Or are players’ performances uncorrelated with where they stand in their contract cycles?

Do Mlb Hitters Boost Performance In Their Contract Year?, Heather M. O'Neill

Business and Economics Faculty Publications

This study focuses on 256 MLB free agent hitters playing under the 2006-2011 CBA to determine whether they boost their offensive performance in their contract year. Prior studies’ results are mixed, depending on the econometric technique used and the choice of the offensive performance measure.

Having multiple year observations per player, one can incorporate the unobserved traits of the players (ability, risk aversion, work ethic, etc.) by using Fixed Effects (FE) estimation. Since these unmeasured player traits are likely to be correlated with observed predictors of performance (games played, playoff contention, age, etc.), traditionally used Ordinary Least Squares (OLS) and …

The Look Of The Line: An Empirical Investigation Of The Impacts Of Facial Symmetry On Salary Levels Of Offensive Linemen In The Nfl, Kristen Wampole

Business and Economics Honors Papers

Evaluation of a professional athlete's performance for the purposes of compensation determination is difficult, especially when decision making may not follow the expected "instrumental rationality." This paper will look to examine the factors, both productive and non-productive, impacting an Offensive Lineman's salary in the NFL. The purpose of this study is to determine whether an offensive lineman's salary is based on productive characteristics adhering to instrumental rationality, or whether the influence of non-productive characteristics influence salary as ultimately determined by team management. Results indicate that players within the tackle position with earning salaries in the seventy-fifth percentile gain additional benefits …

Does Race Influence Executive Compensation In Chinese Firms?, Elizabeth Mahoney

Business and Economics Honors Papers

In this study, we considered the effects of Chinese cultural and political influences on executive compensation in Chinese firms. The chief focus of this study is on whether the race of executives or the racial composition of the compensation committee affects the average compensation of executives, though other factors such as sales, industry, and compensation committee size were also included in the model. Data was collected from Chinese firms listed on the New York Stock Exchange, with data for the companies gathered for the year 2009 and executive salaries collected for the year 2010.

What Effect Do Corporate Governance Characteristics Have On Ceo Compensation In A Small Cap Firm?, Kiley Stauffer

Business and Economics Honors Papers

Extensive research has been conducted to examine the effect that corporate governance structure has on CEO compensation. Past studies have focused primarily on larger corporations and have neglected smaller public firms. By shifting focus to small cap firms, this study hopes to find patterns between CEO compensation and specific corporate governance components. These include CEO duality, the presence of a dual founder CEO, and the level of equity ownership held by the CEO. Empirical evidence has suggested that CEO duality and increased ownership equity of a dual founder CEO may significantly impact CEO compensation.

Do Major League Baseball Hitters Come Up Big In Their Contract Year?, Heather M. O'Neill, Matthew J. Hummel

Business and Economics Faculty Publications

In sports, especially baseball, there is a lot of talk about contract year performance. Beginning in spring training and continuing throughout the season, sports journalists and fans converse about how players in the last year of their contract will perform. Experts in the media, often ex-baseball players themselves, speculate contract year players will have break-out seasons in order to secure a better contract in upcoming contract negotiations. This leads to the question: do baseball players increase their effort and performance during their contract year to increase the value of their next contract?

Stats Or Studs: Does It Pay To Be Good Looking? The Economic Impact Of Lookism, Lisle O'Neill

Business and Economics Honors Papers

“Beauty is in the eye of the beholder” is a phrase that exemplifies the subjectivity of attractiveness. In recent years, researchers in the fields of economics, sociology, and anaplasty have used symmetry analysis in an attempt to make beauty an objective issue. People characterized by greater facial symmetry, as defined by exhibiting balanced lateral proportions, are considered to be more attractive. Furthermore, labor economists, such as Hamermesh and Biddle (1994), suggest a wage premium for more attractive individuals, however, the measure of attractiveness was not based on symmetry. This study examines the effect of NFL quarterbacks' attractiveness on …