Managerial ability and firm performance: Evidence from an emerging market

Bhutta, Aamir Inam; Sheikh, Muhammad Fayyaz; Munir, Aroosa; Naz, Arooj; Saif, Iqra

doi:10.1080/23311975.2021.1879449

Cited by 32 publications

(33 citation statements)

References 38 publications

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“…Few recent literary works have focused on an ownership structure in which the management holds shares (Bhutta & Hizmo, 2021;Riyadh et al, 2019;Inam bhutta et al, 2021). In the Jordanian context, Alabdullah (2018) found that an increase in ownership structure in nonfinancial firms, thus tending to an increase in market share that positively reflected firms' performance.…”

Section: Managerial Ownership and Fpmentioning

confidence: 99%

Ownership structure’s effect on financial performance: An empirical analysis of Jordanian listed firms

Alkurdi¹,

Hamad

Thneibat³

et al. 2021

Cogent Business & Management

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This study aims to examine the impact of the ownership structure on firm performance in the Jordan. This study employed the multiple-regression model and fixed regression effect to analyse the data. The sample included all Jordanian first market firms listed on the Amman Stock Exchange (ASE) from 2012 to 2018. The paper's findings reveal a positive and significant relationship between institutional ownership and both accounting measure Return on Assets (ROA) and market measure Tobin's Q (TQ). Other ownership structure types, such as concentration of ownership, also affect ROA and TQ. While managerial ownership shows a negative relationship with ROA, but there is no association with TQ. This study has broad and comprehensive practical implications that are good for policymakers. On the one hand, it adds to the debate on agency theory from the ownership structure and firm's performance relationship. On the other hand, it helps the Jordanian ABOUT THE AUTHOR

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Section: Managerial Ownership and Fpmentioning

confidence: 99%

Ownership structure’s effect on financial performance: An empirical analysis of Jordanian listed firms

Alkurdi¹,

Hamad

Thneibat³

et al. 2021

Cogent Business & Management

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“…Literature shows that specific manager traits, such as ability, skills, and talent, affect a firm's performance, such as finance, accounting, and managerial research and practice (Demerjian et al 2012). Bhutta et al (2021) found that managers with better ability take initiatives and innovative actions to utilize firm resources for long-run financial sustainability. Additionally, they found that a manager's personality traits and competencies drive optimal resource utilization.…”

Section: The Effect Of Managerial Ability On Firm Performancementioning

confidence: 99%

The effects of managerial ability on firm performance and the mediating role of capital structure: evidence from Taiwan

Ting

Tebourbi

et al. 2021

Financ Innov

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This study utilizes mediation analysis and bootstrapping to analyze the mediating effect of capital structure on the association between managerial ability and firm performance. The dataset consists of 6384 firm-year observations from the Taiwanese electronics industry during 2005–2018. Our results indicate that (1) low (high) levels of debt are likely observed in firms with CEOs with high (low) ability, (2) managerial ability positively affects firm performance, and (3) capital structure mediates the positive relationship between managerial ability and firm performance. Overall, the findings may have limited generalizability due to the specific sample characteristics and provide convincing support for the importance of capital structure as a mediator in the managerial ability-firm performance nexus. Specifically, this study highlights the need for examining the effect of managerial ability on firm performance through a mediator.

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“…Manager ability applies accounting conservatism because it helps the stakeholders (Haider et al, 2021). Managers with high abilities have higher profitability (Inam Bhutta et al, 2021). Accounting conservatism prevents ex-post managerial opportunism (Gao, 2012).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Managerial Ability and Convergent Interest on Accounting Conservatism: Internal Control Quality as a Mediator

2022

QAS

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The development of accounting conservatism has progressed, though with various pros and cons. Therefore, this study aimed to examine the relationship between managerial ability, convergent interest, and accounting conservatism for manufacturing companies on the Indonesia Stock Exchange from 2018 to 2019. The internal quality control was used as a mediating variable of the relationship between managerial ability and convergent interest in accounting conservatism. The results showed that managerial ability and convergent interest affect internal quality control and accounting conservatism, which benefit the company and stakeholders. The Sobel test identified internal quality control as mediating variable of the relationship between managerial ability and convergent interest with accounting conservatism. This study contributed to the accounting conservatism literature and its additional determinants. This study contributes in several different ways. First, to the knowledge, this is the first study to examine a comprehensive model between managerial ability, convergent interest, internal control quality, and accounting conservatism. Second, this study contributes to the literature on accounting conservatism and produces additional determinants of accounting conservatism.

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Managerial ability and firm performance: Evidence from an emerging market

Cited by 32 publications

References 38 publications

Ownership structure’s effect on financial performance: An empirical analysis of Jordanian listed firms

Ownership structure’s effect on financial performance: An empirical analysis of Jordanian listed firms

The effects of managerial ability on firm performance and the mediating role of capital structure: evidence from Taiwan

Managerial Ability and Convergent Interest on Accounting Conservatism: Internal Control Quality as a Mediator

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