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The impact of managerial quality on organizational performance: evidence from German soccer

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  • B Frick
  • R Simmons

Abstract

Although a considerable literature exists on the determinants of managerial compensation, much of it focussing on the role of incentives, there is much less known about the impact of managerial remuneration and quality upon attainment of organizational goals. In this paper we apply two distinct econometric methods to panel data on head coach quality and team performance in Germany’s premier soccer league. We find that, given a particular amount of spending on players relative to the rest of the league, a team that hires a better quality head coach can expect to achieve improved performance.

Suggested Citation

  • B Frick & R Simmons, 2005. "The impact of managerial quality on organizational performance: evidence from German soccer," Working Papers 566927, Lancaster University Management School, Economics Department.
  • Handle: RePEc:lan:wpaper:566927
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    File URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/ManagerialQuality.pdf
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    References listed on IDEAS

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    Cited by:

    1. 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).
    2. De Paola, Maria & Scoppa, Vincenzo, 2008. "The Effects of Managerial Turnover: Evidence from Coach Dismissals in Italian Soccer Teams," MPRA Paper 11030, University Library of Munich, Germany.

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