Do competent managers increase labor productivity? Evidence from Korea

– This study investigates the effect of managerial ability on labor productivity by analyzing various methods in the firm-year panel data of listed firms in South Korea from 2002 to 2019. Managerial ability was analyzed using the measurement method of Demerjian et al. (2012), while labor productivi...

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Main Authors: Donghwan Ahn, Shiyong Yoo, Seungho Cho
Format: Article
Language:English
Published: Emerald Publishing 2023-08-01
Series:Seonmul yeongu
Subjects:
Online Access:https://www.emerald.com/insight/content/doi/10.1108/JDQS-01-2023-0002/full/pdf
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author Donghwan Ahn
Shiyong Yoo
Seungho Cho
author_facet Donghwan Ahn
Shiyong Yoo
Seungho Cho
author_sort Donghwan Ahn
collection DOAJ
description – This study investigates the effect of managerial ability on labor productivity by analyzing various methods in the firm-year panel data of listed firms in South Korea from 2002 to 2019. Managerial ability was analyzed using the measurement method of Demerjian et al. (2012), while labor productivity was analyzed using value-added and sales. The authors find that managerial ability has a positive effect on labor productivity. In other words, the productivity of employees improves with the appointment of a manager with higher abilities. The study’s findings suggest that firms should consider managerial ability as a means of improving labor productivity.
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spelling doaj.art-c524c4d7079f4f83a7dbfe7bbd7adb482023-08-25T10:53:02ZengEmerald PublishingSeonmul yeongu1229-988X2713-66472023-08-0131324226010.1108/JDQS-01-2023-0002Do competent managers increase labor productivity? Evidence from KoreaDonghwan Ahn0Shiyong Yoo1Seungho Cho2CAU Business School, Chung-Ang University, Seoul, South KoreaCAU Business School, Chung-Ang University, Seoul, South KoreaCAU Business School, Chung-Ang University, Seoul, South Korea – This study investigates the effect of managerial ability on labor productivity by analyzing various methods in the firm-year panel data of listed firms in South Korea from 2002 to 2019. Managerial ability was analyzed using the measurement method of Demerjian et al. (2012), while labor productivity was analyzed using value-added and sales. The authors find that managerial ability has a positive effect on labor productivity. In other words, the productivity of employees improves with the appointment of a manager with higher abilities. The study’s findings suggest that firms should consider managerial ability as a means of improving labor productivity.https://www.emerald.com/insight/content/doi/10.1108/JDQS-01-2023-0002/full/pdfManagerial abilityManagerial efficiencyLabor productivityValue addedData envelopment analysisDynamic panel model
spellingShingle Donghwan Ahn
Shiyong Yoo
Seungho Cho
Do competent managers increase labor productivity? Evidence from Korea
Seonmul yeongu
Managerial ability
Managerial efficiency
Labor productivity
Value added
Data envelopment analysis
Dynamic panel model
title Do competent managers increase labor productivity? Evidence from Korea
title_full Do competent managers increase labor productivity? Evidence from Korea
title_fullStr Do competent managers increase labor productivity? Evidence from Korea
title_full_unstemmed Do competent managers increase labor productivity? Evidence from Korea
title_short Do competent managers increase labor productivity? Evidence from Korea
title_sort do competent managers increase labor productivity evidence from korea
topic Managerial ability
Managerial efficiency
Labor productivity
Value added
Data envelopment analysis
Dynamic panel model
url https://www.emerald.com/insight/content/doi/10.1108/JDQS-01-2023-0002/full/pdf
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AT shiyongyoo docompetentmanagersincreaselaborproductivityevidencefromkorea
AT seunghocho docompetentmanagersincreaselaborproductivityevidencefromkorea