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

Author

Listed:
  • ter Weel, Bas

    (SEO Amsterdam)

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 advantage of using sports data is that both manager characteristics and decisions and firm outcomes are directly observable. Both difference-in-difference and 2SLS estimates suggest no improvements in firm performance after manager turnover, whereas previous research based on publicly traded firm data has found positive but very small effects of manager turnover on firm performance. In addition, manager quality does not seem to matter in predicting turnover. These estimates are compared and contrasted with studies using publicly traded firm data.

Suggested Citation

  • ter Weel, Bas, 2006. "Does Manager Turnover Improve Firm Performance? New Evidence Using Information from Dutch Soccer, 1986-2004," IZA Discussion Papers 2483, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2483
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    File URL: https://docs.iza.org/dp2483.pdf
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    References listed on IDEAS

    as
    1. 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.
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    6. repec:lan:wpaper:3596 is not listed on IDEAS
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    8. Bernd Frick & Robert Simmons, 2008. "The impact of managerial quality on organizational performance: evidence from German soccer," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(7), pages 593-600.
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    1. Policy fetishism
      by chris dillow in Stumbling and Mumbling on 2009-03-31 19:06:26

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    Cited by:

    1. Adrian R. Bell & Chris Brooks & David Matthews & Charles Sutcliffe, 2012. "Over the moon or sick as a parrot? The effects of football results on a club's share price," Applied Economics, Taylor & Francis Journals, vol. 44(26), pages 3435-3452, September.
    2. Bernd Frick, 2007. "The Football Players' Labor Market: Empirical Evidence From The Major European Leagues," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(3), pages 422-446, July.

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    More about this item

    Keywords

    firm performance; management turnover;

    JEL classification:

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

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