Managerial ability and bank failure

Luu, Hiep Ngoc; Doan, Thang Ngoc; Anh, Phạm Thị Hoàng

doi:10.1080/13504851.2020.1752892

Cited by 5 publications

(7 citation statements)

References 10 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Third, four measures of earnings quality are tested in this study so the results may not be generalizable to other measures. Fourth, although Demerjian's measure of managerial ability used in this study is one of the most widely employed in the literature (e.g., Luu et al, 2020), it is an approximate measure for managerial performance, hence the possibility that the measure may include idiosyncratic abnormal performance cannot be ruled out. Moreover, this measure does not include human capital ability which is conceptualized by prior literature (e.g., Hambrick and Mason, 1984).…”

Section: Discussionmentioning

confidence: 99%

“…The managerial heterogeneity literature (e.g., Demerjian et al 2013;Yung and Chen 2018;Baik et al, 2020;Chen et al, 2020a;Choo et al, 2020;Doukas and Zhang, 2020;Hesarzadeh, 2020;Luu et al, 2020;Oskouei and Sureshjani, 2020;Yung and Nguyen, 2020) indicates that managerial abilitydefined as higher power in the generation of sales revenue for a given set of resources the firm owns (Demerjian et al, 2012) is an important factor that affects tax avoidance, corporate investment, cost of debt, corporate innovative success, executive compensation and firm performance. 1 Particularly, in the context of financial reporting, prior studies (e.g., Demerjian et al, 2013;Huang and Sun, 2017) show that managerial ability significantly affects earnings quality.…”

Section: Introductionmentioning

confidence: 99%

“…One possible reason for the aforementioned discrepancy is outlined in the literature, which suggests that the impact of managerial ability on diverse variables may be influenced by uncertainty (e.g., Rosen, 1981;Gabaix and Landier, 2008;Bamber et al, 2010;Hribar et 1 Following the literature (e.g., Demerjian et al, 2012;Choi et al, 2015;Baik et al, 2020;Chen et al, 2020a;Doukas and Zhang, 2020;Luu et al, 2020;Oskouei and Sureshjani, 2020;Yung and Nguyen, 2020), this paper defines managerial ability based on managerial efficiency, relative to their industry peers, in transforming corporate resources to revenues. Assessing managerial ability based on managerial efficiency is intuitively appealing as it is in line with the overarching goal of profit-maximizing firms (e.g., Demerjian et al, 2012;Doukas and Zhang, 2020).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Managerial ability, earnings quality and ISIS: evidence from Iraq

Bazrafshan

Makarem

Hesarzadeh

et al. 2021

IJOEM

View full text Add to dashboard Cite

PurposeThis study investigates the association between managerial ability and earnings quality in firms listed on the Iraq Stock Exchange and how the emergence of the Islamic State of Iraq and Syria (ISIS) influences the association.Design/methodology/approachThis study uses a sample of firms listed on the Iraq Stock Exchange over the period 2012–2018. Managerial ability is quantified using data envelopment analysis, and earnings quality is measured by earnings restatement, earnings persistence, accruals quality and earnings response coefficient. Panel regression analysis is used to examine the research hypotheses.FindingsThe findings indicate that managerial ability positively affects earnings quality of Iraqi firms and that ISIS weakens the relationship between managerial ability and earnings quality. These findings are robust to the alternative measures of managerial ability, as well as to various approaches used to address endogeneity including propensity-score matching and a difference-in-differences analysis.Originality/valueThis study provides insight into the impact of managerial ability on earnings quality in an under-studied emerging market. Furthermore, this study broadens the existing literature about the financial consequences of a modern terrorist group, ISIS.

show abstract

Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Managerial ability, earnings quality and ISIS: evidence from Iraq

Bazrafshan

Makarem

Hesarzadeh

et al. 2021

IJOEM

View full text Add to dashboard Cite

show abstract

“…Therefore, most previous studies have used the firm's resource efficiency as a measure of MA (Imeni et al, 2121;Demerjian et al, 2013). Previous studies used a DEA-based method (DEA, hereafter) developed by Demerjian et al, (2012), for measuring MA (Imeni et al, 2121;Luu et al, 2020;Luo and Zhou ,2017). DEA is a frontier analysis that calculates efficiency as the ratio of weighted outputs to weighted inputs.…”

Section: Ma Measurementioning

confidence: 99%

The Impact of The Relationship Between Managerial Ability and Earnings Management by Classification Shifting on Transparency of Financial Reporting and Firm Value: An Empirical Evidence from The Saudi Capital Market

ضیف¹

2022

مجلة البحوث المحاسبیة

View full text Add to dashboard Cite

This research investigates the impact of interaction between managerial ability (MA, hereafter), and earnings management by classification shifting (EMBCS, hereafter) on financial reporting transparency and firm value. This study examines whether highly competent managers are more likely than other managers to intentionally classification shifting as a means of managing earnings. Furthermore, this study also tests economic consequences associated with the inter-relationship between EMBCS practices and MA. We collected data from 125 nonfinancial firms listed on the Saudi Capital Market from 2015 to 2019. The results demonstrate that a high MA mitigates EMBCS practices. The results also show that the inter-relationship between EMBCS practices and MA reduces the costs of the agency as an indicator of the transparency of accounting information. Moreover, our findings show that the relationship between EMBCS practices and MA has a positive influence on the value of the firms listed on the Saudi Capital Market.

show abstract

“…As previously mentioned, management must be able to optimally utilize the resources of the company and use these resources to maximize returns and revenues [34].…”

Section: Independent Variable (Managerial Ability Measure (Ma))mentioning

confidence: 99%

The Effect of Managerial Ability on Earnings Classification Shifting and Agency Cost of Iranian Listed Companies

Imeni

Fallah²,

Edalatpanah³

2021

Discrete Dynamics in Nature and Society

View full text Add to dashboard Cite

The objective of this study is to examine the relationship between managerial ability and earnings classification shifting of firms listed in the Tehran Stock Exchange (TSE). The paper consists of a sample of 1,875 firm-year observations after applying systematic elimination sampling method during a period of fifteen years, from 2005 to 2019. This study used the multivariate panel data regression for testing the links between variables. The results of this study provide that there is a positive relationship between managerial ability and earnings classification shifting. The obtained results indicate that there is a negative relationship between managerial ability and real earnings management and no relationship between managerial ability and AEM. In addition, managerial ability mitigates the negative effect of earnings management on future firm performance. Furthermore, managerial ability affects its agency cost positively due to the reduction in earnings management. This paper contributes to developing management literature and financial reporting literature. The study focuses on links managerial ability and earnings classification shifting and agency cost in a developing country like Iran, and the results of the paper can fill distance theory and practice by empirical test. Furthermore, the results of this study indicate in an emerging market, namely, Iran, that has a political business environment among the other countries of the Middle East, managerial ability can release Iranian firms on economic sanctions and financial pressures. This paper is the first study of its type in Iran.

show abstract

Managerial ability and bank failure

Cited by 5 publications

References 10 publications

Managerial ability, earnings quality and ISIS: evidence from Iraq

Managerial ability, earnings quality and ISIS: evidence from Iraq

The Impact of The Relationship Between Managerial Ability and Earnings Management by Classification Shifting on Transparency of Financial Reporting and Firm Value: An Empirical Evidence from The Saudi Capital Market

The Effect of Managerial Ability on Earnings Classification Shifting and Agency Cost of Iranian Listed Companies

Contact Info

Product

Resources

About