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

29 Pages Posted: 7 Jan 2007

See all articles by Bas ter Weel

Bas ter Weel

University of Amsterdam - SEO Economic Research; Institute for the Study of Labor (IZA)

Date Written: December 2006

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.

Keywords: management turnover, firm performance

JEL Classification: J24

Suggested Citation

ter Weel, Bas, Does Manager Turnover Improve Firm Performance? New Evidence Using Information from Dutch Soccer, 1986-2004 (December 2006). IZA Discussion Paper No. 2483, Available at SSRN: https://ssrn.com/abstract=955270 or http://dx.doi.org/10.2139/ssrn.955270

Bas Ter Weel (Contact Author)

University of Amsterdam - SEO Economic Research ( email )

Roetersstraat 29
Amsterdam, 1018 WB
Netherlands

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

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