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The Effects of Managerial Turnover: Evidence from Coach Dismissals in Italian Soccer Teams

Author

Listed:
  • De Paola, Maria
  • Scoppa, Vincenzo

Abstract

In this paper sport data are used to study the effects of manager replacement on firm performance. Using match results of the major Italian soccer league (“Serie A”) we analyze the effects of coach (manager) changes in terms of team performance. From our preliminary estimates, including year and team fixed effects, it emerges that changing the coach produces a positive effect on a number of measures of team performance. However, this effect turns out to be statistically insignificant once we take into account the fact that the firing of a coach is not an exogenous event, but it is triggered by a “dip” in team performance. Using as an instrument for coach change the number of remaining matches in the season (which is a proxy for the residual length of the coach contract) Two-Stages Least Squares estimations do not show any significant effect of coach change on team performance.

Suggested Citation

  • 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.
  • Handle: RePEc:pra:mprapa:11030
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    File URL: https://mpra.ub.uni-muenchen.de/11030/1/MPRA_paper_11030.pdf
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    References listed on IDEAS

    as
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    1. repec:col:000108:011054 is not listed on IDEAS
    2. 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.
    3. Sandra Hentschel & Gerd Mühlheusser & Dirk Sliwka, 2012. "The Impact of Managerial Change on Performance. The Role of Team Heterogeneity," CESifo Working Paper Series 3950, CESifo Group Munich.
    4. 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.
    5. 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.
    6. 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.
    7. Costanza Torricelli & Maria Cesira Urzì Brancati & Luca Mirtoleni, 2014. "The impact of skill and management structure on Serie A Clubs’ performance," Centro Studi di Banca e Finanza (CEFIN) (Center for Studies in Banking and Finance) 14107, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
    8. 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.
    9. 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.
    10. Andres Giraldo & Juan Mendoza & Andrés Rosas & Dayana Tellez, 2013. "Managerial Turnover: Coach Dismissals and Team Performance in Colombia," VNIVERSITAS ECONÓMICA 011054, UNIVERSIDAD JAVERIANA - BOGOTÁ.
    11. Hentschel, Sandra & Muehlheusser, Gerd & Sliwka, Dirk, 2014. "The Contribution of Managers to Organizational Success: Evidence from German Soccer," IZA Discussion Papers 8560, Institute for the Study of Labor (IZA).
    12. Miller, Ashley, 2013. "Principal turnover and student achievement," Economics of Education Review, Elsevier, vol. 36(C), pages 60-72.

    More about this item

    Keywords

    Managerial Turnover; Dismissal; Performance evaluation; Sport economics;

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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