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

Maria De Paola () and Vincenzo Scoppa ()

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Managerial Turnover, Dismissal; Performance evaluation; Sport economics (search for similar items in EconPapers)
JEL-codes: L2 L83 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab and nep-spo
Date: 2008-09
References: View references in EconPapers View complete reference list from CitEc
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