재무연구 제 권 호 (2010년 5월)
Asian Review of Financial Research, Vol., No..
pp.1248~1291
pp.1248~1291
Do Managers Matter More in Challenging Corporate Environments?
Sung Wook Joh College of Business Administration Seoul National University, Korea
Jin-Young Jung College of Business Administration Seoul National University, Korea
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.
Sung Wook Joh
Jin-Young Jung
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.
Managerial ability,Firm value,Academic credentials,Board of directors,Corporate environments
