Firm Survival in Professional Sports: Evidence from the German Football League
AbstractThis paper investigates firm survival in professional football, arguing that the relegation and promotion system in football leagues is very similar to firm exits and entries in traditional goods and service markets. Empirically, we use a dataset containing information on how long football teams have remained in the German Premier League over the playing seasons 1981-82 to 2009-10. Controlling for club and market specific characteristics, such as a team's budget or its player composition, our findings suggest that younger firms are systematically exposed to higher risks of market exit in professional football, which is often referred to as `liability of newness' in industrial organization.
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Bibliographic InfoPaper provided by University of Salzburg in its series Working Papers in Economics and Finance with number 2010-16.
Length: 30 pages
Date of creation: 10 Nov 2010
Date of revision: 27 Aug 2011
Firm survival; liability of newness; duration analysis; sports leagues; relegation;
Find related papers by JEL classification:
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
- L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
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- Silviano Esteve-Pérez & Juan Mañez-Castillejo, 2008. "The Resource-Based Theory of the Firm and Firm Survival," Small Business Economics, Springer, vol. 30(3), pages 231-249, March.
- Silviano Pérez & Amparo Llopis & Juan Llopis, 2004. "The Determinants of Survival of Spanish Manufacturing Firms," Review of Industrial Organization, Springer, vol. 25(3), pages 251-273, 08.
- Carlos Pestana Barros & Bernd Frick & Jose Passos, 2009. "Coaching for survival: the hazards of head coach careers in the German 'Bundesliga'," Applied Economics, Taylor & Francis Journals, vol. 41(25), pages 3303-3311.
- Miguel ManjÃ³n-AntolÃn & Josep-Maria Arauzo-Carod, 2008. "Firm survival: methods and evidence," Empirica, Springer, vol. 35(1), pages 1-24, March.
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