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Does Manager Turnover Improve Firm Performance? Evidence from Dutch Soccer, 1986-2004

Author

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  • Bas ter Weel

    (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

This research examines the impact of manager turnover on firm performance using information from the Dutch soccer league in the period 1986-2004. The main advantage of using sports data is that both manager characteristics and decisions and firm outcomes are directly observable. Both difference-in-difference and 2 SLS estimates suggest no statistically significant improvements in performance after manager turnover, whereas previous research based on publicly traded firm data has found positive but very small effects of manager turnover on performance. The estimates confirm previous research using soccer data. In addition, estimates suggest that manager quality does not seem to matter in predicting turnover. These estimates are compared and contrasted with studies using publicly traded firm data and studies using soccer data. This paper has been accepted for publication and will appear in De Economist in 2011.

Suggested Citation

  • Bas ter Weel, 2011. "Does Manager Turnover Improve Firm Performance? Evidence from Dutch Soccer, 1986-2004," CPB Discussion Paper 166, CPB Netherlands Bureau for Economic Policy Analysis.
  • Handle: RePEc:cpb:discus:166
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    References listed on IDEAS

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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. The bosses' pay con-trick
      by chris dillow in Stumbling and Mumbling on 2011-10-28 14:21:13

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    Cited by:

    1. van Ours, Jan C & Van Tuijl, Martin, 2014. "In-season head-coach dismissals and the performance of professional football teams," CEPR Discussion Papers 10191, C.E.P.R. Discussion Papers.
    2. Jan C. van Ours & Martin A. van Tuijl, 2016. "In-Season Head-Coach Dismissals And The Performance Of Professional Football Teams," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 591-604, January.
    3. Andres Giraldo & Juan Mendoza & Andrés Rosas & Dayana Tellez, 2013. "Managerial Turnover: Coach Dismissals and Team Performance in Colombia," VNIVERSITAS ECONÓMICA 011054, UNIVERSIDAD JAVERIANA - BOGOTÁ.
    4. Lucas M. Besters & Jan C. Ours & Martin A. Tuijl, 2016. "Effectiveness of In-Season Manager Changes in English Premier League Football," De Economist, Springer, vol. 164(3), pages 335-356, September.
    5. Baert, Stijn & Amez, Simon, 2016. "No Better Moment to Score a Goal than Just Before Half Time? A Soccer Myth Statistically Tested," IZA Discussion Papers 9980, Institute for the Study of Labor (IZA).

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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