Examining the Impact of Managerial Ability on Firm Performance: A Case Study of the Iranian Capital Market

Authors

https://doi.org/10.22105/cerh1498

Abstract

It aims to understand and improve how companies perform, which is influenced by the ability managers have; therefore, the aim is to examine the impact of managerial ability on firm performance. For the present study, three hypotheses were formulated. In order to test these hypotheses, a linear regression model has been used. The statistical population consisted of 117 companies listed on the Tehran Stock Exchange during the years 2013 to 2022 (1170 firm- year). The Data Envelopment Analysis (DEA) model [1] was used to assess managers' capabilities. In addition, three criteria were used to assess the performance of companies: Qtobin stock return and true accounting performance. The research results indicate that there is no significant relationship between managers' ability and the company's Return (RET). However, there is a significant relationship between managers' capabilities and the Qtobin-based performance (QT) of the firm. In addition, there is a significant relationship between managers' ability and the True Accounting-based performance (TA) of the firm. An important aspect of managerial ability is the ability to adapt and innovate in response to environmental and market changes. Studying these aspects can help to identify the best management methods and strategies, which in turn can improve management knowledge and increase productivity in companies.

Keywords:

Managers' abilities, Ture accounting performance, Firm performance, Return

References

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Published

2024-09-28

Issue

Vol. 1 No. 2 (2024): Transactions on Quantitative Finance and Beyond

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How to Cite

Imeni, M. ., Faezi, B. ., & Bagherzadeh, A. (2024). Examining the Impact of Managerial Ability on Firm Performance: A Case Study of the Iranian Capital Market. Transactions on Quantitative Finance and Beyond, 1(2), 171-180. https://doi.org/10.22105/cerh1498
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