Generally, I believe a study shouldn't be rejected because of the results it produces, although it's certainly very tempting to point out the many eyebrow-raising moments in this one! Instead, we should be looking at the methodology, which is a bit difficult because, frankly, the mathematics of this are way beyond me, and I'm generally not a klutz when it comes to numbers. But, apart from that, there are a few things to consider.
The stated aim of the paper is to find out "who are the best F1 drivers of all time, conditional on team performance", or in other words, trying to calculate team performance out of the race results. So, what does a "team" perform in motor racing? In simple terms, it provides the car, and prepares it for competition. That's already a pretty complex proposition, as some teams build (almost) all of the components of the cars themselves, others simply buy existing hardware and concentrate on the preparational aspect. I don't see where any of this is conceptionalized in this study, so it doesn't seem to have bothered the authors too much. In fact, the only "definition" of a team can be found on page 29:
Teams are defined based on the chassis-engine-constructor combination, unless a constructor changes the chassis or engine used mid-season, in which case the team is judged to continue as that team. Whilst this is problematic where a team changes the car for one driver and not another, this problem only affects a small minority of team-years.
So that in fact, it seems we're talking about constructors, not teams. Or, do we? Let's take a look at Figure A3 on page 44 listing the "Top 20 team.level residues":
1 Ferrari
2 McLaren
3 Mercedes
4 Red Bull
5 Benetton
6 Lotus (2010s)
7 Williams
8 Daimler-Benz AG
9 Brawn
10 Matra Intl.
11 Renault
12 John Player/Lotus
13 Marlboro-Texaco
14 Cooper
15 Tyrrell
16 Maserati
17 North American
18 BMW Sauber
19 Ligier
20 Porsche
That listing alone poses more questions than answers! In short, for an analysis with the declared intention of measuring the impact of "teams" on driver performance, I would have expected a better definition of terms, and a strict adherence to those terms. Of course, one could also argue that the inherent object of motor racing is the competition between cars, and to compute them out of the equation is counter productive in itself, but in an age of one-make racing series I know that I am fighting a losing battle, thank you.
;)
The other thing I found remarkable was that the authors evidently considered Michael Schumacher's ranking in 8th to be too low, and Nico Rosberg's in 13th too high, so they "split" Schumacher into two drivers, a "pre-retirement" one and a "post-retirement" one. They didn't do that with other "un-retired" drivers, like Niki Lauda, Alain Prost or Alan Jones, or other drivers with big gaps in their careers, such as Peter Revson, Mike Hailwood or Jan Lammers, as a matter of fact. But apart from that, it highlights for me again the folly of using career averages in racing statistics: if Schumacher was the third best F1 driver of all time when he first retired in 2006, how can Clark, Senna, Piquet and Stewart have overtaken him by 2012 without having competed in any races at all during that time?