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Type: Journal article
Title: The impact of managerial change on performance: the role of team heterogeneity
Author: Muehlheusser, G.
Schneemann, S.
Sliwka, D.
Citation: Economic Inquiry, 2016; 54(2):1128-1149
Publisher: Blackwell Publishing
Issue Date: 2016
ISSN: 0095-2583
Statement of
Gerd Muehlheusser, Sandra Schneemann, Dirk Sliwka
Abstract: When a key responsibility of a manager is to allocate more or less attractive tasks, subordinates have an incentive to work hard and demonstrate their talents. As a new manager is less well informed, management dismissals reinvigorate this tournament competition—but only in sufficiently homogeneous teams. We investigate this hypothesis using a large dataset on dismissals of soccer coaches, whose main task is indeed the selection of players. We find that dismissals enhance performance (only) in homogeneous teams. Moreover, we show that there is typically a negative selection bias when evaluating succession effects, which reconciles previous contradictory findings. (JEL D22, J44, J63)
Rights: © Western Economic Association International
DOI: 10.1111/ecin.12285
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Appears in Collections:Aurora harvest 3
Economics publications

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