The effects of managerial ability on firm performance and the mediating role of capital structure: evidence from Taiwan
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...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Springer
2021
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| Online Access: | http://umpir.ump.edu.my/id/eprint/33706/7/The%20efects%20of%20managerial%20ability.pdf |
| _version_ | 1796995017005334528 |
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| author | Ting, Irene Wei Kiong Tebourbi, Imen Lu, Wen-Min Kweh, Qian Long |
| author_facet | Ting, Irene Wei Kiong Tebourbi, Imen Lu, Wen-Min Kweh, Qian Long |
| author_sort | Ting, Irene Wei Kiong |
| collection | UMP |
| description | 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. |
| first_indexed | 2024-03-06T12:56:07Z |
| format | Article |
| id | UMPir33706 |
| institution | Universiti Malaysia Pahang |
| language | English |
| last_indexed | 2024-03-06T12:56:07Z |
| publishDate | 2021 |
| publisher | Springer |
| record_format | dspace |
| spelling | UMPir337062022-04-21T04:49:53Z http://umpir.ump.edu.my/id/eprint/33706/ The effects of managerial ability on firm performance and the mediating role of capital structure: evidence from Taiwan Ting, Irene Wei Kiong Tebourbi, Imen Lu, Wen-Min Kweh, Qian Long HG Finance 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. Springer 2021 Article PeerReviewed pdf en cc_by_4 http://umpir.ump.edu.my/id/eprint/33706/7/The%20efects%20of%20managerial%20ability.pdf Ting, Irene Wei Kiong and Tebourbi, Imen and Lu, Wen-Min and Kweh, Qian Long (2021) The effects of managerial ability on firm performance and the mediating role of capital structure: evidence from Taiwan. Financial Innovation, 7 (89). pp. 1-23. ISSN 2199-4730. (Published) https://doi.org/10.1186/s40854-021-00320-7 https://doi.org/10.1186/s40854-021-00320-7 |
| spellingShingle | HG Finance Ting, Irene Wei Kiong Tebourbi, Imen Lu, Wen-Min Kweh, Qian Long The effects of managerial ability on firm performance and the mediating role of capital structure: evidence from Taiwan |
| title | The effects of managerial ability on firm performance and the mediating role of capital structure: evidence from Taiwan |
| title_full | The effects of managerial ability on firm performance and the mediating role of capital structure: evidence from Taiwan |
| title_fullStr | The effects of managerial ability on firm performance and the mediating role of capital structure: evidence from Taiwan |
| title_full_unstemmed | The effects of managerial ability on firm performance and the mediating role of capital structure: evidence from Taiwan |
| title_short | The effects of managerial ability on firm performance and the mediating role of capital structure: evidence from Taiwan |
| title_sort | effects of managerial ability on firm performance and the mediating role of capital structure evidence from taiwan |
| topic | HG Finance |
| url | http://umpir.ump.edu.my/id/eprint/33706/7/The%20efects%20of%20managerial%20ability.pdf |
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