@article {1968716,
	title = {Swinging for the Fences? Payroll, Performance and Risk Behavior in the Major League Baseball Draft},
	journal = {Journal of Sport Management},
	year = {2021},
	month = {2021},
	abstract = {This study examines the way competitive advantage and organization performance mediate the effect of potential slack {\textendash} externally-available resources {\textendash} on organization risk behavior in Major League Baseball{\textquoteright}s amateur draft. It tests the hypotheses that local market munificence provides payroll advantage and increases on-field performance and that payroll disadvantage and poor performance increase teams{\textquoteright} likelihood of selecting riskier high school players instead of college players. Consistent with resource deprivation theory, results suggest that payroll disadvantage promotes risk-taking; however, on-field success encourages risk-taking early in the draft. Indeed, pick number appears to have a U-shape relationship with risk-taking where winning increases confidence earlier in the draft and low stakes promote risk-seeking later. This study contributes to the literature by suggesting that input-based and outcome-based reference metrics have different effects on risk behavior and that managerial hubris may influence risk behavior through information availability rather than having a general effect.},
	keywords = {Strategy \& Entrepreneurship},
	author = {Barden,Jeffrey and Choi,Yohan}
}