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Managerial Beliefs and Firm Performance: Field Evidence from Professional Elite Soccer

Author

Listed:
  • David Boto-Garcìa

    () (University of Oviedo)

  • Alessandro Bucciol

    () (Department of Economics (University of Verona))

  • Luca Zarri

    () (Department of Economics (University of Verona))

Abstract

Using detailed field data covering ten seasons of the Italian soccer premier league, we provide the first evidence on the key role played by managerial beliefs in firm performance in a high-powered incentives natural setting where managers receive frequent feedback. We show that managers’ confidence and risk tolerance positively affect performance. Next, we document asymmetrically biased belief updating, in line with prior laboratory work on non-managers. By shedding light on overlooked features of manager-firm interplays and managers’ information processing, our findings corroborate and help qualify the “managers matter” view advanced in recent fieldwork based on low-frequency data.

Suggested Citation

  • David Boto-Garcìa & Alessandro Bucciol & Luca Zarri, 2020. "Managerial Beliefs and Firm Performance: Field Evidence from Professional Elite Soccer," Working Papers 19/2020, University of Verona, Department of Economics.
  • Handle: RePEc:ver:wpaper:19/2020
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Managerial Beliefs; Firm performance; Professional Soccer; Field data;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • Z20 - Other Special Topics - - Sports Economics - - - General

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