An econometric evaluation of the effect of firing a coach on team performance

Firing the manager is a drastic measure employed by firms to deal with poor performance. However, data on within-firm dynamics are scarce, and the firing of individual managers is rarely recorded in the firm level data currently available. This makes the value of firing a manager difficult to assess. Data on sports offer a unique opportunity to study this phenomenon because the firing of a coach is usually well-publicized. Using data on soccer, the author evaluates the effect of the firing of a coach on team performance. As teams do not face the same opponents before and after a coach is fired, the issue of sample selectivity is addressed.