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Leader Dismissal or Continuity, President Longevity, Geographic Orientation of Owners and Team Performance: Insights from French Men’s Football, 1994–2016

Author

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  • Nicolas Scelles

    (Department of Economics, Policy and International Business, Manchester Metropolitan University Business School, All Saints Campus, Oxford Road, Manchester M15 6BH, UK)

  • Matthieu Llorca

    (Department of Economics, Université de Bourgogne Franche-Comté, 2 Boulevard Gabriel, 21066 Dijon, France)

Abstract

We investigated the impacts of president longevity and the geographic orientation of owners on team performance and on the effectiveness of dismissing the leader. In addition, we considered their impacts on the effectiveness of not dismissing the leader while the same organisation fires them at another time for a similar performance. We also tested the impact of dismissing the leader or not on performance. We explored the aforementioned risk-taking relationships in the first tier of French men’s football over the 1994–2016 period (n = 4918 observations). To do so, we used a counterfactual based on the evolution of the team position over the last three games leading to the leader change and estimate linear regression models with fixed team effects. Our findings show that performance improves either after a leader dismissal or not in the same situation, and both president longevity and the geographic orientation of owners impact the effectiveness of dismissing the leader or not. In particular, global- and local-oriented ownerships have a positive impact on the effectiveness of the decision to dismiss the leader or not compared to national-oriented ownership. Practical implications stem from the research, e.g., how organisations with national-oriented ownership can overcome their competitive disadvantage.

Suggested Citation

  • Nicolas Scelles & Matthieu Llorca, 2021. "Leader Dismissal or Continuity, President Longevity, Geographic Orientation of Owners and Team Performance: Insights from French Men’s Football, 1994–2016," JRFM, MDPI, vol. 14(9), pages 1-17, September.
    • Handle: RePEc:gam:jjrfmx:v:14:y:2021:i:9:p:439-:d:633091
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    References listed on IDEAS

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    6. Yan Zhang, 2008. "Information asymmetry and the dismissal of newly appointed CEOs: an empirical investigation," Strategic Management Journal, Wiley Blackwell, vol. 29(8), pages 859-872, August.
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    12. Nicolas Scelles & Matthieu Llorca, 2. "Head coach change and team performance in the French men's football Ligue 1, 2000-2016," Economics Bulletin, AccessEcon, vol. 40(2), pages 920-937020.
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    Cited by:

    1. Michael Barth & Martin Schnitzer & Hannes Winner, 2022. "Editorial: Special Issue “Risk in Sports and Challenges for Sports Organizations”," JRFM, MDPI, vol. 16(1), pages 1-3, December.

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