Why do leaders matter? A revisit of player-turned-coaches from the NBA

Abstract

ABSTRACT This article re-estimates equations that have shown elite basketball players do better as leaders when they turn into coaches. Using comprehensive data from the NBA during the last three decades, we show that player-turned-coaches do not win statistically more matches in regular seasons while they do better in playoffs. The relatively better performance is driven by former guard players who lead to more defensive rebounds, free throws made, and points in the last moment of close matches during playoffs. In further analyses of direct channels, we show that guard-turned-coaches as a good example of expert leaders perform relatively better in strategic decision-making. For indirect channel analysis, we also provide statistical evidence that guard-turned-coaches are more creditable to both the insiders and outsiders of organizations.