This paper examines the effect of managerial ability on Tobin’s Q of non-financial firms. We find that a positive impact from managerial ability (measured by academic credentials of top managers) increases when government economic interventions weaken. This effect is stronger in firms with higher growth opportunities, higher risks, higher R&D expenses, better corporate governance, or in firms under financial distress. The effects are robust to controls for endogeneity and social network benefits. Our results suggest that high-ability managers contribute more to firm value when corporate environments are more challenging.
JEL code: G30, O16, I20
Key words: Managerial ability, Firm value, Academic credentials, Board of directors, Corporate environments
학회소식
학회소식
[2010년 제 2차] When Does Managerial Ability Increase Firm Value Mo
작성자 : 관리자
조회수 : 728
게시일 :
2010-06-08
첨부파일