The Contribution of Managers to Organizational Success: Evidence from German Soccer

30 Pages Posted: 25 Oct 2014

See all articles by Sandra Hentschel

Sandra Hentschel

Bielefeld University

Gerd Muehlheusser

University of Hamburg; IZA Institute of Labor Economics

Dirk Sliwka

University of Cologne - Department of Business Administration and Human Resource Management; IZA Institute of Labor Economics

Abstract

We study the impact of managers on the success of professional soccer teams using data from the German "Bundesliga". We evaluate the performance impact of individual managers by estimating regression models that include both team and manager fixed effects, where we are exploiting the high turnover of managers between teams to disentangle the managers' contributions. We find that teams employing a manager at the 75% ability percentile gain on average 0:25 points per game more than those employing a manager at the 25% ability percentile, which corresponds to a sizeable difference of 18% of the average number of points awarded per game. Moreover, estimated abilities have significant predictive power for future performance.

Keywords: managerial skills, human capital, empirical, fixed effects, professional sports

JEL Classification: J24, J44, J63

Suggested Citation

Hentschel, Sandra and Muehlheusser, Gerd and Sliwka, Dirk, The Contribution of Managers to Organizational Success: Evidence from German Soccer. IZA Discussion Paper No. 8560. Available at SSRN: https://ssrn.com/abstract=2514753

Sandra Hentschel (Contact Author)

Bielefeld University ( email )

Universit├Ątsstra├če 25
Bielefeld, NRW 33613
Germany

Gerd Muehlheusser

University of Hamburg ( email )

Von Melle Park 5
Hamburg, 20146
Germany

IZA Institute of Labor Economics

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

Dirk Sliwka

University of Cologne - Department of Business Administration and Human Resource Management ( email )

Koln, 50923
Germany

IZA Institute of Labor Economics

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

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