TY  - RPRT
        AU  - Hentschel, Sandra
AU  - Muehlheusser, Gerd
AU  - Sliwka, Dirk
        TI  - The Impact of Managerial Change on Performance: The Role of Team Heterogeneity
        PY  - 2012/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 6884
        UR  - https://www.iza.org/publications/dp6884
        AB  - When a key responsibility of a manager is to allocate more or less attractive tasks to subordinates, these subordinates have an incentive to work hard and demonstrate their talents. As a new manager is less well acquainted with these talents this incentive mechanism is reinvigorated after a management change – but only when the team is sufficiently homogenous. Otherwise, a new manager quickly makes similar choices as the old one did. We investigate this hypothesis using a large data set on coach dismissals in the German football league where the selection of players is indeed a key task of the coach. Indeed, we find substantial evidence that coach replacements enhance team performance (only) in homogenous teams. Moreover, from a methodological point of view, we argue that there is typically a negative selection bias when evaluating succession effects, which might reconcile previous findings of no (or even negative) effects with the vast number of dismissals observed in reality.
        KW  - managerial succession
KW  - teams
KW  - heterogeneity
KW  - tournaments
        ER  -