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Finding good managers: an econometric case study of a large Japanese auto dealership

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Abstract
Using the personnel and transaction data from a large auto dealership in Japan, this paper discusses the value, incentives, assignments, determinants of performance, and learning of managers. We find that: (1) moving one standard deviation up the distribution of manager fixed effects raises a branch's profit by 9.3%; (2) the relationship between managers' branch assignments and their performance is more consistent with tournament theory rather than screening or learning mechanism; (3) better managers are systematically selected to run less profitable branches; and (4) managers with smaller age difference with subordinates and broader experience tend to perform better.

Suggested Citation

  • Hideo Owan & Shingo Takahashi & Tsuyoshi Tsuru & Katsuhito Uehara, 2014. "Finding good managers: an econometric case study of a large Japanese auto dealership," Working Papers EMS_2014_08, Research Institute, International University of Japan.
    • Handle: RePEc:iuj:wpaper:ems_2014_08
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    File URL: https://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2014_08.pdf
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    Cited by:

    1. Thomas Peeters & Steven Salaga & Matthew Juravich, 2015. "Matching and Winning? The Impact of Upper and Middle Managers on Team Performance in Major League Baseball," Tinbergen Institute Discussion Papers 15-115/VII, Tinbergen Institute, revised 03 Mar 2020.
    2. Thomas L. P. R. Peeters & Steven Salaga & Matthew Juravich, 2020. "Matching and Winning? The Impact of Upper and Middle Managers on Firm Performance in Major League Baseball," Management Science, INFORMS, vol. 66(6), pages 2735-2751, June.

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