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Manager to go? Performance dips reconsidered with evidence from Dutch football

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  • Bruinshoofd, Allard
  • ter Weel, Bas

Abstract

This paper examines whether the forced resignation of managers of Dutch football teams leads to an improvement in the results. We find by analysing 12 years of football in the highest Dutch league that forced resignations are preceded by declines in team performance and followed by improvements in performance. However, the improvement in performance after appointing a new manager does not exceed the seasonal average of both the old and new manager. More importantly, using a control group, it turns out that when the manager would not have been forced to resign, performance would have improved more rapidly. We conclude from this that sacking a manager seems to be neither effective nor efficient in terms of improving team performance.

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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Operational Research.

Volume (Year): 148 (2003)
Issue (Month): 2 (July)
Pages: 233-246

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Handle: RePEc:eee:ejores:v:148:y:2003:i:2:p:233-246

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  1. Khanna, Naveen & Poulsen, Annette B, 1995. " Managers of Financially Distressed Firms: Villains or Scapegoats?," Journal of Finance, American Finance Association, vol. 50(3), pages 919-40, July.
  2. James J. Heckman & Jeffrey A. Smith, 1999. "The Pre-Program Earnings Dip and the Determinants of Participation in a Social Program: Implications for Simple Program Evaluation Strategies," NBER Working Papers 6983, National Bureau of Economic Research, Inc.
  3. Heckman, James J & Smith, Jeffrey, 1997. "Making the Most Out of Programme Evaluations and Social Experiments: Accounting for Heterogeneity in Programme Impacts," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 487-535, October.
  4. James Heckman & Neil Hohmann & Jeffrey Smith, 1998. "Substitution and Dropout Bias in Social Experiments: A Study of an Influential Social Experiment," UWO Department of Economics Working Papers 9819, University of Western Ontario, Department of Economics.
  5. Koning, R.H., 2000. "An econometric evaluation of the firing of a coach on team performance," Research Report 00F40, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
  6. Denis, David J & Denis, Diane K, 1995. " Performance Changes Following Top Management Dismissals," Journal of Finance, American Finance Association, vol. 50(4), pages 1029-57, September.
  7. Ashenfelter, Orley C, 1978. "Estimating the Effect of Training Programs on Earnings," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 47-57, February.
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Cited by:
  1. C. Detotto & D. Paolini, 2012. "Do managerial skills matter? An analysis of the impact of managerial features on performance for the Italian football," Working Paper CRENoS 201220, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  2. Andres Giraldo & Juan Mendoza & Andrés Rosas & Dayana Tellez, 2013. "Managerial Turnover: Coach Dismissals and Team Performance in Colombia," DOCUMENTOS DE ECONOMÍA 011054, UNIVERSIDAD JAVERIANA - BOGOTÁ.
  3. Antonio Samagaio & Eduardo Couto & Jorge Caiado, 2009. "Sporting, financial and stock market performance in English football: an empirical analysis of structural relationships," CEMAPRE Working Papers 0906, Centre for Applied Mathematics and Economics (CEMAPRE), School of Economics and Management (ISEG), Technical University of Lisbon.
  4. Bas Weel, 2011. "Does Manager Turnover Improve Firm Performance? Evidence from Dutch Soccer, 1986–2004," De Economist, Springer, vol. 159(3), pages 279-303, September.
  5. ter Weel, Bas, 2006. "Does Manager Turnover Improve Firm Performance? New Evidence Using Information from Dutch Soccer, 1986-2004," IZA Discussion Papers 2483, Institute for the Study of Labor (IZA).
  6. Yusuf Emre Akgunduz & Marcel van den Berg, 2013. "Make or buy? Human capital accumulation strategies in European club football," Working Papers 13-17, Utrecht School of Economics.
  7. Flores, Ramón & Forrest, David & Tena, J.D., 2012. "Decision taking under pressure: Evidence on football manager dismissals in Argentina and their consequences," European Journal of Operational Research, Elsevier, vol. 222(3), pages 653-662.

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