Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7355665 | International Review of Financial Analysis | 2018 | 12 Pages |
Abstract
This study examines whether firms operated by superior managers can obtain more favorable investment opportunities using data on U.S. industrial firms during 1988-2015. The empirical results disclose that there exists a positive relationship between managerial ability and investment opportunity, and that the relation is only significant in financially unconstrained firms or firms in a strong financial position. Overall, our findings support that firms having managers with superior ability could gain more economic profits via better investment opportunity. Through our research, policy makers and investors can pay more attention on managerial ability.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Chien-Chiang Lee, Chih-Wei Wang, Wan-Chien Chiu, Te-Sheng Tien,