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dc.contributor.authorRavid, S. Abraham
dc.contributor.authorHan, Shu
dc.identifier.citationShu Han, S. Abraham Ravid (2020) Star Turnover and the Value of Human Capital—Evidence from Broadway Shows.Management Science 66(2):958-978.
dc.identifier.issnISSN: 0025-1909, 1526-5501
dc.descriptionResearch article / open-accessen_US
dc.description.abstractTheater shows routinely turn over actors in lead roles. Otherwise, the show stays the same, including the director, the script, other actors and, the physical theater environment. Even the lines performed do not change the set. Therefore, the theater provides a unique laboratory for assessing the value of human capital to an enterprise, a question that has been studied in other contexts, including the CEO value literature. We compare revenues, capacity, and ticket prices just before and just after transitions of top cast members.We also characterize the performers in various ways and control for the attributes of the show and for team characteristics. We find that decorated theater stars significantly affect the financial success of theater shows, supporting the MacDonald version of the super star hypothesis. Movie stars and celebrities do not seem to affect ticket prices or show revenues.Teams and seasonal effects seem to matter as wellen_US
dc.description.sponsorshipAcknowledgments: The authors thank seminar participants at the 16th annual Mallen Movie Economics Conference at Yale University;participants in seminars at Harvard Business School, Yeshiva University, University of Nebraska, and Lund University, as well as at New York University (NYU), in particular, David Yermack and Yakov Amihud; participants in the Financial Institutions, Regulation and Corporate Governance conference in Melbourne, 2017, especially the discussant, Michael Smith; and participants in the creative industries conference at NYU, 2017 and Financial Management Association 2017,especially the discussant Lorenzo Casaveccia. The authors also thank participants at the International Conference on Arts and Management in France, 2015, in particular, AllegreHadida and Pier Mannucci, for useful comments and suggestions on an earlier version of the paper; Lauren Cohen,Liran Einav, Kose John, Raghu Rau, Stephen Brown, and Olav Sorenson for useful comments and conversations, as well as Sara Ravid for suggestions; Carolee Carmello and Gregg Edelman for many useful discussions based on their decorated Broadway career; Charlotte St. Martin, President of the Broad-way League, and the League’s research staff for helpful discussions; and Ethan Applebaum, Avi Goldstein, RaffHizami, Sara Ravid, Orren Ravid, and Avi Skidelsky for dedicated research assistance. The authors are grateful to the editor, Renee Adams, for guidance and for many useful comments and suggestionsen_US
dc.publisherInstitute for Operations Research and the Management Sciences (INFORMSen_US
dc.relation.ispartofseriesManagement Science;66(2)
dc.rightsAttribution-NonCommercial-NoDerivs 3.0 United States*
dc.subjecthuman capitalen_US
dc.subjecttheater showsen_US
dc.titleStar Turnover and the Value of Human Capital—Evidence from Broadway Shows.Management Science.en_US

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