2021
DOI: 10.1186/s40854-021-00320-7
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The effects of managerial ability on firm performance and the mediating role of capital structure: evidence from Taiwan

Abstract: 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… Show more

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Cited by 23 publications
(22 citation statements)
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References 93 publications
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“…In this regard, our study is similar to Fernando et al (2020), who posit and find empirical evidence, that the impact of gender diversity on firm performance is mediated by managerial ability. In addition, Ting et al (2021), Mithas et al (2011) and Tanriverdi (2005) use mediation analyses to evaluate how certain variables mediate the relationship between other variables and firm performance.…”
Section: Discussionmentioning
confidence: 99%
“…In this regard, our study is similar to Fernando et al (2020), who posit and find empirical evidence, that the impact of gender diversity on firm performance is mediated by managerial ability. In addition, Ting et al (2021), Mithas et al (2011) and Tanriverdi (2005) use mediation analyses to evaluate how certain variables mediate the relationship between other variables and firm performance.…”
Section: Discussionmentioning
confidence: 99%
“…Managers in particular can enhance their ability to set the way in multiple settings and immediately monitor the effects of their policies and decisions. The result is that the overall performance is enhanced [55].…”
Section: Discussionmentioning
confidence: 99%
“…At the first stage of analytical work to study the optimality of the portfolio of attracted resources of a banking organization, it is advisable to draw up a visualization model of the properties of the funds raised (Ting et al, 2021;Hafezalkotob et al, 2019). For this purpose, the entire volume of attracted resources should be grouped into: • PS1 -deposits of individuals; • PS2 -deposits of legal entities; • PS3 -other attracted resources.…”
Section: Methodsmentioning
confidence: 99%