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

Posted: 10 Jan 2009

See all articles by Maria De Paola

Maria De Paola

Università degli Studi della Calabria - Department of Economics and Statistics

Vincenzo Scoppa

Università degli Studi della Calabria - Department of Economics and Statistics

Date Written: January 9, 2009

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 ("Series 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

JEL Classification: J63; M50; M54; L83

Suggested Citation

De Paola, Maria and Scoppa, Vincenzo, The Effects of Managerial Turnover: Evidence from Coach Dismissals in Italian Soccer Teams (January 9, 2009). Available at SSRN: https://ssrn.com/abstract=1325254

Maria De Paola

Università degli Studi della Calabria - Department of Economics and Statistics ( email )

via Ponte Bucci
Arcavacata di Rende, Cosenza 87036
Italy

Vincenzo Scoppa (Contact Author)

Università degli Studi della Calabria - Department of Economics and Statistics ( email )

via Ponte Bucci
Arcavacata di Rende, Cosenza 87036
Italy

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