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 o...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 Taiwan Residents 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.展开更多
We examine the relation between managerial ability and management forecast accuracy. We base our analysis on S＆P 500 Composite Index constituents for the period of 2006-2012. Data were collected from Thomson Reuteurs...We examine the relation between managerial ability and management forecast accuracy. We base our analysis on S＆P 500 Composite Index constituents for the period of 2006-2012. Data were collected from Thomson Reuteurs, Compustat and Demerjian, Lev, and McVay （2012）. We find that forecast accuracy is positively associated with managerial ability in the case of sales forecasts. Specifically, more able managers are associated with lower magnitude＇s forecast errors in the case of sales forecasts. Additional analysis finds that managerial ability is immaterial to EPS figures＇ forecast accuracy, i.e., EPS forecasts appear not to be affected by manager＇s superiority. Regarding sales forecasts, the results are consistent with the assertion that managers impact the quality of the delivered management forecasts. Regarding EPS forecasts, the results are in alignment with Demerjian, Lev, Lewis, and McVay （2013） who highlighted that managerial ability is an ability score related to the entire management team.展开更多
基金Funding was provided by Universiti Malaysia Pahang(Grant No.RDU1903110).
文摘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 Taiwan Residents 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.
文摘We examine the relation between managerial ability and management forecast accuracy. We base our analysis on S＆P 500 Composite Index constituents for the period of 2006-2012. Data were collected from Thomson Reuteurs, Compustat and Demerjian, Lev, and McVay （2012）. We find that forecast accuracy is positively associated with managerial ability in the case of sales forecasts. Specifically, more able managers are associated with lower magnitude＇s forecast errors in the case of sales forecasts. Additional analysis finds that managerial ability is immaterial to EPS figures＇ forecast accuracy, i.e., EPS forecasts appear not to be affected by manager＇s superiority. Regarding sales forecasts, the results are consistent with the assertion that managers impact the quality of the delivered management forecasts. Regarding EPS forecasts, the results are in alignment with Demerjian, Lev, Lewis, and McVay （2013） who highlighted that managerial ability is an ability score related to the entire management team.
