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on Sports and Economics |
| By: | Juan D. Moreno-Ternero; Tim Pawlowski; Shlomo Weber |
| Abstract: | This paper examines the interdependence of international success and competitive balance of domestic sports competitions. More specifically, we apply the notion of the Herfindahl-Hirschman index to examine the effect of international rewards on distortion of competitive balance in domestic competitions and derive conditions under which the level of domestic competitive balance raises or falls. Our results yield interesting policy implications for the regulation of prize schemes in international competitions. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.08396&r=spo |
| By: | Kaori Narita; Benjamin Holmes; Ian McHale |
| Abstract: | Previous research in economics and management finds significant heterogeneity across senior managers in their contribution to organisational success. It remains, however, challenging to disentangle the impact of managers from that of other inputs, such as labour, due to limited data availability in many general organisations. In contrast, individual workers (players)’ performance and their characteristics are publicly available in professional football leagues. Therefore, this study employs data from the industry to estimate individual managers’ contributions to field performance, given the resources at hand. To measure a club’s output, we adopt expected goals, which are less influenced by randomness than conventional measures. Controlling for players’ quality based on their historical performance as well as a club’s financial strengths, we yet find significant impacts of managerial inputs. In addition, we compare our estimated manager coefficients with a more naive measure of managerial performance, such as winning percentage. This highlights the importance of taking into account the differences in resources that a manager has at his disposal as well as the randomness of the outcome when evaluating a manager’s performance. |
| Keywords: | firm performance, managers, football, performance evaluation, leadership |
| JEL: | M54 Z22 L25 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:liv:livedp:202224&r=spo |
| By: | Kaori Narita; J.D. Tena; Babatunde Buraimo |
| Abstract: | Previous research in leadership succession focuses on establishing whether such an event has a positive impact on the subsequent performance of an organisation. However, factors that can affect the effectiveness of leadership change are not well understood. The aim of this study is to identify the causes of first and second within-season head coach dismissals and estimate the impact of the two types of dismissal on field performance using data from the Italian professional football league (Serie A). We employ inverse propensity score weighting together with machine learning techniques in order to mitigate selection bias. Our analysis shows that the determinants of the two decisions are not identical in that the second replacement is likely to be taken with greater caution. Despite this, we find some positive effects of first dismissals on subsequent performance, whilst the second dismissals do not appear to make any difference. These findings suggest that frequent changes in leadership are not favourable options even when a recent replacement has not improved the situation. This could be because the potential benefit of leadership replacement may be counteracted by disruptive effects, or a source of underperformance may lie elsewhere rather than a manager. |
| Keywords: | leadership succession, machine learning, inverse propensity score weighting, football managers |
| JEL: | J63 M51 Z22 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:liv:livedp:202226&r=spo |
| By: | Fumarco, Luca; Longley, Neil; Palermo, Alberto; Rossi, Giambattista |
| Abstract: | We follow workers' performance along an unbalanced panel dataset over multiple years and study how performance varies at the end of fixed-term contracts, in a labour market where some people face a mobility restricting clause (i.e., a noncompete clause). Focusing on the labour market of the National Hockey League, we analyse players' performance data and contracts with a fixed effect estimator to address empirical limitations in previous studies. We find that, on average, NHL players' performance does not vary. However, our estimations detect substantially heterogeneous behaviours, depending on tenure, perceived expected performance, and mobility. Only younger players (i.e., restricted free-agents) with high expected mobility but low expected performance tend to behave strategically and perform better. Differently, older players (i.e., unrestricted free-agents) with high expected mobility tend to underperform, as the option of moving back to European tournaments is more appealing. |
| Keywords: | strategic behaviour, mobility, noncompete clauses |
| JEL: | D82 J24 J33 M52 Z22 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1401&r=spo |