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The impact of managerial quality on organizational performance: evidence from German soccer

✍ Scribed by Bernd Frick; Robert Simmons

Publisher: John Wiley and Sons
Year: 2008
Tongue: English
Weight: 121 KB
Volume: 29
Category: Article
ISSN: 0143-6570
DOI: 10.1002/mde.1431

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✦ Synopsis

Abstract

In this paper we use a novel panel data set from the German premier soccer league (Bundesliga) as a case to show how variations in managerial compensation impact positively upon organizational (team) success. Using stochastic frontier analysis, we find that a team that hires a better quality coach can expect to achieve a higher league points total by reducing technical inefficiency. However, our results also suggest that the market for head coaches may be allocatively inefficient in that coaches are paid below their marginal revenue products. Copyright © 2008 John Wiley & Sons, Ltd.

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