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What Makes the Ideal Profile of a New Manager in Times of Adversity? Evidence from Italian Serie A

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  • Kaori Naritaa
  • J .D. Tenaa
  • Claudio Detottoc

Abstract

Leadership succession entails changes in various managerial human capital. However, this issue has been rather overlooked in the literature. Whilst much of the previous studies focus on an overall impact of managerial turnover on organisational success, this paper contributes to the field by providing with some evidence that the changes in different characteristics of a manager, such as experience, skills, expertise, and relevance, asymmetrically affect post-succession performance. Using the data from the top-tier Italian football league for the seasons 2004/2005 - 2017/2018 inclusive, the effects of shifts in managerial human capital, in addition to Average Treatment Effect of replacing a head coach, are estimated by means of weighted regression with Inverse Propensity Score Weighting. In line with previous findings in the majority of literature, we find that head coach replacement does not significantly improve on-field performance, which implies that such a decision may be taken too often. However, significant improvement is found when a new manager is more experienced, has stronger association with the club, has been on sabbatical in the previous season, or is more defence oriented, relative to a dismissed head coach. Meanwhile, differences in neither playing career nor industry specific knowledge between outgoing and incoming managers affect effectiveness of replacement. The robustness of these results is tested for different performance measures and event windows.

Suggested Citation

  • Kaori Naritaa & J .D. Tenaa & Claudio Detottoc, 2020. "What Makes the Ideal Profile of a New Manager in Times of Adversity? Evidence from Italian Serie A," Working Papers 202031, University of Liverpool, Department of Economics.
    • Handle: RePEc:liv:livedp:202031
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    Keywords

    OR in sports; Replacement; Human capital; Propensity score weighting; Football managers;
    All these keywords.

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