Abstract
It is well established that management practices have on average a significant and large impact on firm output after controlling for a range of standard factors such as other inputs, industry etc. We investigate non-linearities in the impact of management practices on firm performance using Gaussian process and a continuous piece-wise linear approach with probabilistically smoothed endogenous breaks. In all cases we find significant evidence of a U-shaped relationship: the impact of better management practices are 40% smaller than previously thought for the majority of the population but between 3 and 7 times larger for firms in the top tail.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
