Modelling employment durations of NHL head coaches: turnover and post‐succession performance

Match‐level National Hockey League (NHL) data are used to identify factors likely to trigger the departure of a team's coach, and to measure the short‐term impact on subsequent match results. There is a statistically significant link between individual match results and the job departure hazard for up to 15 games prior to the point of departure. The hazard depends on the team's current standing within its conference relative to a pre‐season forecast, recent performance in the Stanley Cup, the coach's age and previous employment with his present team as a player. After controlling for a mean‐reversion effect, teams that changed their coach within‐season are found to perform worse subsequently than those that did not, but the negative effect is short‐lived. Copyright © 2006 John Wiley & Sons, Ltd.     

The effect of management changes on winning in professional sports: Analysis using a dynamic lag adjustment model

This paper examines whether coaching and general manager (GM) changes among three professional sports leagues—the National Football League (NFL), the Major League Baseball (MLB), and the National Basketball Association (NBA)—effect on‐field performance. Our empirical methodology uses team‐level data by season and adapts a lag adjustment econometric approach designed to resolve several statistical challenges that arise both in general managerial settings and in sports settings. Our main finding is that coaching changes in the NFL boost the number of wins per season by between 0.5 and 1.2 in each of the first five seasons. Coaching changes have smaller, but still positive, impacts in the MLB and NBA. For all the three leagues, we find that GM changes have no discernable impact on performance. A separate cross‐sectional analysis suggests that those small impacts stem from coaches and GMs having extremely compressed talent distributions. The data indicate that coaches and GMs, en masse, are important, but changing the people who occupy those positions rarely seems to move teams to different locations on the performance distribution.     

Trading cost expectations: Evidence from S&P 500 index replacement stock announcements

This paper tests the effect on stock value of an expected change in future trading costs. The capitalized value of a reduction in trading costs is hypothesized to increase the stock value, a trading cost effect. Improved liquidity reduces trading costs. Inclusion as an S&P 500 Index replacement stock is an event hypothesized to increase liquidity. We use 114 observations between January 1, 1983 and October 12, 1989 of stocks added to the Index as replacements for stocks removed. The abnormal return of each stock is regressed against the ratio of the bidask spread to the price of the stock, the change in trading volume of the stock, and the open interest in the Index futures contracts at the close of the month prior to the replacement announcement. We find that the positive abnormal returns for replacement stocks are related to increased daily trading volume after inclusion in the Index. Further, the trading cost effect is proportional to percentage bid-ask spreads prior to inclusion. The trading cost effect increases as trading in derivatives of the Index increases. The volume and stock price changes after replacement are not transitory, indicating an improvement in liquidity. Three alternate hypotheses suggested in prior research to explain the abnormal returns for replacement stocks are tested. Testing each of the three models previously considered: price pressure, inelastic demand curves, and information, we find that none can be accepted with statistical confidence. The abnormal returns of Index replacement stocks are consistent with rational pricing of an anticipated reduction in future transaction costs. This anticipated reduction is capitalized in the value of the stock at the time of the replacement announcement. These results are consistent with a trading cost effect.     

Enhancing employee and organizational performance through coaching based on mystery shopper feedback: A quasi‐experimental study

Based on reinforcement theory, a quasi‐experimental design was used to evaluate the effect of (a) feedback obtained from (b) a relatively neutral third party (namely, mystery shoppers) that was obtained on a (c) variable interval schedule for managers to use to (d) coach their employees. An interrupted time‐series design showed that both employee and organizational performance increased as a result of this intervention. Performance dropped when this intervention was cut back and, subsequently, discontinued. These results were replicated in two additional restaurants. © 2012 Wiley Periodicals, Inc.     

The effect of strike replacement legislation on employment

Employers and employer groups often argue that restrictions on an employer's ability to use replacement workers during a strike reduce employment. This study analyzes provincial employment-to-population ratios for 1966–1994 and unionized bargaining unit employment growth rates for 1966–1993 to test for an impact of provincial strike replacement policies in Canada. A strike replacement ban that restricts the use of both permanent and temporary replacements is found to have adverse employment consequences. The results for reinstatement rights provisions (effectively banning permanent replacements) and professional strikebreaker bans are mixed.     

An empirical model of mainframe computer investment

This paper introduces a dynamic model of investment decisions in mainframe computer systems. I estimate and test the model using detailed micro data from a company in the telecommunications industry. The model accounts for ‘technological depreciation’ which distinguishes computers from other investment goods where physical depreciation is typically a key factor underlying replacement investment decisions. The company increased its installed mainframe computer capacity by over 30‐fold over the 10‐year sample period. Part of this growth was undoubtedly due to the huge increase in performance and the corresponding drop in the per unit cost of processing capacity of mainframes, a consequence of ‘Moore's law’. However, there was also tremendous growth in the need for computers for billing, account processing and other tasks, due to the rapid growth in the telecommunications industry over this same time period. I estimate the unknown parameters of the investment model using a nonlinear least squares–nested fixed‐point algorithm (NLS‐NFXP), which solves the Bellman equation underlying the dynamic model of investment and replacement of mainframe computers by nonlinear least squares. I demonstrate that it is feasible to estimate this model on an ordinary PC, whereas standard discretization approaches to solving the firm's optimal investment policy might not even be feasible using supercomputers. I show that the estimated model fits the data very well, and accurately captures the large growth in installed mainframe capacity, the timing and magnitude of replacement investment, as well as periodic upgrades of existing mainframe units. I use the model to decompose how much of the 30‐fold increase in mainframe computer capacity is due to ‘Moore's law’ (i.e. the huge drop in the unit cost of installed mainframe capacity), and how much is due to the growth in demand for services of mainframes, due to the rapid growth in demand for telecommunications services (particularly cell phone accounts) by the firm's customers. Copyright © 2010 John Wiley & Sons, Ltd.     

Top executive turnovers: Separating decision and control rights

This paper examines the relationship between performance and top executive turnovers using a sample of 81 turnovers and matching companies listed on the Copenhagen Stock Exchange. We find that poor market performance increases the probability of management replacements and that forced layoffs are value‐increasing events while voluntary resignations are value‐decreasing events. Large shareholders as active monitors, or part of corporate control, are not exhibited in the results. If large shareholders have any influence on CEO turnovers it is not revealed in our data. Indeed, separating control rights from decision rights does not appear to affect managerial turnovers. Copyright © 2004 John Wiley & Sons, Ltd.     

MEASURING THE EFFECT OF NAPSTER ON RECORDED MUSIC SALES: DIFFERENCE‐IN‐DIFFERENCES ESTIMATES UNDER COMPOSITIONAL CHANGES

This paper measures the effect of Napster on record sales. I treat the introduction of Napster as a technological event that only Internet users experienced, and use a difference‐in‐differences (DD) approach. Because of potential compositional changes in Internet users, I examine identifying assumptions for the DD estimator under compositional changes and develop a test for identifying restrictions. To address potential bias due to compositional changes, I extend DD matching estimators to the case of two‐variate propensity scores. I find evidence suggesting that file sharing is likely to explain 20% of total sales decline, which is driven by households with children aged 6–17. Copyright © 2011 John Wiley & Sons, Ltd.     

Perceived HRM practices,organizational commitment,and voluntary early retirement among late‐career managers

Using a sample of 514 French late‐career managers representing a variety of occupations and organizations, we investigated the relations among perceived HRM practices, organizational commitment, and voluntary early retirement. We found that the provision of training opportunities was associated with the most favorable outcomes. It was related to higher affective and high‐sacrifice commitment, lower lack of alternatives commitment, and reduced voluntary early retirement. On the other hand, we found that flexible working conditions and the assignment of older workers to new roles (for example, mentor or coach) did not have the expected positive effects. In addition, our results highlight the importance of disentangling the components of continuance commitment, as high‐sacrifice commitment was associated with reduced likelihood of voluntary early retirement, while lack of alternatives commitment had the opposite effect. These findings suggest that voluntary early retirement should be incorporated as a major outcome in future organizational behavior research. © 2009 Wiley Periodicals, Inc.     

The characteristics of dyadic trust in executive coaching

This qualitative study explores the development of trust in executive coaching relationships. Interviews were conducted with 27 high‐level executives who were voluntarily engaged in executive coaching for the purpose of leadership development. The theory that emerged from these findings, as expressed in an integrated model of sequential, interdependent trust development, was that interplay of relational, situational, and behavioral factors influenced the development of trust in executive coaching. Trust was highest when (a) the client was willing to disclose honest feelings and thoughts to the coach and was met with a supportive, nonjudgmental reaction from the coach; (b) the organization was supportive of the positive leadership development that could occur in executive coaching; (c) the coach and client were clear about expectations of confidentiality and outcomes; and (d) the coach supportively confirmed the client's developmental needs, and challenged the client's leadership behaviors. These multiple, interdependent factors manifested throughout the coaching relationship to result in bonds of trust.     

Firm Performance,Governance Structure,and Top Management Turnover in a Transitional Economy*

abstract Recent research has argued that political and regulatory environments have a significant impact on corporate governance systems. In particular, countries with poor investor protection laws and weak law enforcement have low levels of corporate governance that manifests itself in substandard financial performance, management entrenchment, and the expropriation of minority shareholders. One implication of this research is that China will have poor corporate governance and entrenched managers as its legal system is relatively underdeveloped and inefficient. However, using data on top management turnover in China's listed firms, our results refute the prediction of entrenched management. We find evidence of very high turnover of company chairmen and there are many cases that we interpret to be forced departures. Our results show that chairman turnover is related to a firm's profitability but not to its stock returns. Turnover‐performance sensitivity is higher if legal entities are major shareholders but the proportion of non‐executive directors perversely affects it. We find no evidence that profitability improves after a change in chairman and this suggests that a firm's governance structure is ineffective as it is unable to recruit suitable replacements that can turn around its financial performance.     

The real problem: The deadly combination of psychologisation,scientism, and normative promotionalism takes strategic human resource management down a 30‐year dead end

This paper engages with Troth and Guest (2019) on psychology in HRM. I argue they misframe the central issue in debate. The real problem is not psychology per se but psychologisation—the drive to reduce explanation of macro‐level HRM outcomes to individual‐level psychological‐behavioural factors and individual differences. Accordingly, the most visible and harmful effects of psychologisation are in strategic HRM and the HRM‐performance literature but Troth and Guest's defence of psychology does not cover them. I use this response to re‐establish that it is psychologisation, not psychology per se, that is the critics' focal concern and describe how the three‐decade advance of psychologisation, along with scholastic scientism and normative promotionalism, have created severe theoretical and empirical problems in the high‐performance research programme and taken the strategic HRM field down a 30‐year dead‐end. Suggestions for a turn‐around are provided.     

Has the November Effect Replaced the January Effect in Stock Markets?

Results of previous studies support the November effect of the 1986 Tax Reform Act (TRA) on certain stock portfolios. The rapid growth of mutual funds driven by the fundamental changes in the retirement benefit system in past decades may expand the seasonality from portfolios to stock markets and lead to a replacement of the January effect with the November effect in stock markets. Results of this study support the January effect in the large‐cap and small‐cap stock markets in the pre‐TRA period, although the January effect may share a large portion of co‐variation with the size effect. However, the November effect is independent of the size effect. Furthermore, a major shifting process of the January effect to the November effect occurs in both the large‐cap and small‐cap stock markets. The significant result of the November effect in the post‐TRA period questions the claim that fund managers are capable in mitigating potential price pressures. Copyright © 2011 John Wiley & Sons, Ltd.     

Moving on up: The Rooney rule and minority hiring in the NFL

Detecting and quantifying racial discrimination in the labor market is difficult. The sports industry offers a wealth of data and specific hiring practices which mitigates this difficulty. The Rooney Rule requires National Football League teams to interview at least one minority candidate when hiring a head coach. We examine a unique data set of high-level assistant coaches (offensive and defensive coordinators) from the beginning of the 1970 season through the beginning of the 2009 season to determine whether race is a factor in NFL teams' decisions to promote these assistants to head coach. Using logit and hazard models that control for age, experience and performance, we conclude that conditional on a coach reaching coordinator status, there is no evidence that race influences head coach hiring decisions. We also find no evidence that the Rooney Rule has increased the number of minority head coaches.     

It is merely a matter of time: A meta‐analysis of the causality between environmental performance and financial performance

Research on the relationship between corporate environmental performance (CEP) and financial performance (CFP) continuously receives high attention in both general media and academic publications. One central issue concerns the causal effects between the two constructs. Because existing primary literature is characterized by its heterogeneous study designs and mixed empirical evidence, the aim of this paper is to explicitly shed light on the causality effects between CEP and CFP by means of a meta‐analysis of 893 empirical estimates from 142 CEP–CFP studies. Our findings suggest that in the short run (1 year), financial resources can increase a firm's environmental performance as proposed by the slack resources hypothesis; however, the effects disappear in the long run (after more than 1 year). Conversely, increasing environmental performance has no short‐term effect on a corporate financial performance, whereas a firm significantly benefits in the long term, which is in accordance with the Porter hypothesis. Overall, our results show that the causality between environmental performance and financial performance depends on the time horizon.     

New Insights into Unemployment Duration and Post Unemployment Earnings in Germany*

Building on non‐stationary search theory ( Mortensen, 1977 ; Van den Berg, 1990 ), this article estimates the effects of UB on unemployment durations and future earnings using unique administrative data in Germany. We apply censored Box–Cox quantile regression. Our results imply that the length of entitlement shows only a weak effect on unemployment duration for entitlement lengths up to 12 months and no effect on post unemployment earnings. There are noticeable effects on exits from unemployment for entitlement lengths above 12 months. A high wage replacement rate for low‐wage earners is associated with a longer duration of unemployment and higher post unemployment earnings.     

The Provision of Relative Performance Feedback: An Analysis of Performance and Satisfaction

This paper studies the effect of providing relative performance feedback on individuals’ performance, under two incentive schemes. In a laboratory setup, agents perform a real‐effort task. We show that relative performance feedback increases performance when performance is related to pay (piece‐rate) but has no effect on performance when pay is independent of performance (flat‐rate). These effects are independent of the agent's relative position. Subjects are also asked to rate their satisfaction during the experiment. We find that under flat‐rate, feedback has no effect on agents’ satisfaction, while under piece‐rate, feedback about relative position affects satisfaction.     

The Distributional Effects of Tax‐benefit Policies under New Labour: A Decomposition Approach*

I revisit the distributional effects of tax‐benefit policy reforms under New Labour using counterfactual microsimulations embedded in a Shapley decomposition of time change in inequality and poverty indices. This makes it possible to quantify the relative effect of policy changes compared to all other changes, and to check the sensitivity of this policy effect to the use of (i) income vs. price indexation, and (ii) base vs. end period data. Inequality and poverty depth would have increased, and the sharp fall in child poverty would not have occurred, had the reforms of income support and tax credits not been implemented.     

The Effect of PhD Funding on Postdegree Research Career and Publication Productivity

This paper explores the extent to which PhD funding encourages postdegree research career and leads to publications. Using novel data on Italian PhD graduates, I find positive modest effects of funding both on pursuing a research career and on publication productivity within a few years after graduation. The results are robust to a battery of checks and different model specifications. I also provide evidence that funded students invest more in research‐oriented activities and spend less time on outside (non‐research) work during the PhD, thus highlighting mechanisms that potentially account for the effect of funding.     

Teacher Quality and Student Achievement: Evidence from a Sample of Dutch Twins

This paper examines the causal link that runs from classroom quality to student achievement using data on twin pairs who entered the same school but were allocated to different classrooms in an exogenous way. In particular, we apply twin fixed‐effects estimation to assess the effect of teacher quality on student test scores from second through eighth grade of primary education, arguing that a change in teacher quality is probably the most important classroom intervention within a twin context. In a series of estimations using measurable teacher characteristics, we find that (a) the test performance of all students improves with teacher experience; (b) teacher experience also matters for student performance after the initial years in the profession; (c) the teacher experience effect is most prominent in earlier grades; (d) the teacher experience effects are robust to the inclusion of other classroom quality measures, such as peer group composition and class size; and (e) an increase in teacher experience also matters for career stages with less labor market mobility, which suggests positive returns to on‐the‐job learning of teachers. Copyright © 2016 John Wiley & Sons, Ltd.