Managerial ability, financial constraints, and the value of cash holding

被引：17
|
作者：
Tsai, Jung-Fa [1 ]
Mai, Ngoc Thuy [1 ]
Bui, Dien Giau [2 ]
机构：
[1] Natl Taipei Univ Technol, Dept Business Management, Taipei, Taiwan
[2] Yuan Ze Univ, Coll Management, Taoyuan, Taiwan
来源：
APPLIED ECONOMICS LETTERS | 2022年 / 29卷 / 05期
关键词：
Managerial ability; skilful CEOs; financial constraint; cash holding;
D O I：
10.1080/13504851.2020.1870917
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
We find that a skilful CEO, who persistently performs well over several years, can reduce a firm's financial constraints. Our finding is robust to an instrumental variable regression, different definitions of a skilful CEO, and alternative measures of financial constraints. Further, we provide evidence that skilful managers improve the value of their firms' cash holdings. Thus, this study contributes to the literature by exploring a potential bright side of managerial ability.
引用
收藏
页码：462 / 468
页数：7
相关论文
共 50 条
  • [21] Financial Constraints and Cash Tax Savings
    Edwards, Alexander
    Schwab, Casey
    Shevlin, Terry
    ACCOUNTING REVIEW, 2016, 91 (03): : 859 - 881
  • [22] Chief executive officer ability and cash holding decision
    Magerakis, Efstathios
    REVIEW OF ACCOUNTING AND FINANCE, 2022, 21 (05) : 449 - 485
  • [23] Impact of financial constraints and financial distress on cash holdings
    Bukalska, Elzbieta
    Maziarczyk, Anna
    INTERNATIONAL JOURNAL OF MANAGEMENT AND ECONOMICS, 2023, 59 (01) : 13 - 31
  • [24] The role of corruption in shaping the value of holding cash
    La Rocca, Maurizio
    Cambrea, Domenico Rocco
    Cariola, Alfio
    FINANCE RESEARCH LETTERS, 2017, 20 : 104 - 108
  • [25] Managerial cash use, default, and corporate financial policies
    Arnold, Marc
    JOURNAL OF CORPORATE FINANCE, 2014, 27 : 305 - 325
  • [26] Cash Holding, the Value of Cash Holding, and Corporate Life Cycle in Taiwan: An Examination of the Precautionary Motive Hypothesis
    Su, Xuan-Qi
    Lowe, Alpha
    Shih, Yi-Cheng
    Li, Summer
    NTU MANAGEMENT REVIEW, 2016, 26 (02): : 173 - 209
  • [27] Financial Hedging, Corporate Cash Policy, and the Value of Cash
    Sun, Wenyi
    Yin, Chao
    Zeng, Yeqin
    BRITISH JOURNAL OF MANAGEMENT, 2022, 33 (03) : 1271 - 1303
  • [28] The moderating effect of financial constraints on the relationship between stock price crash risk and managerial ability
    Shelih, Ragia
    Wang, Li
    INTERNATIONAL JOURNAL OF ACCOUNTING AND INFORMATION MANAGEMENT, 2024, 32 (01) : 122 - 146
  • [29] Managerial Ability, Financial Distress, and Audit Fees
    Gul, Ferdinand A.
    Khedmati, Mehdi
    Lim, Edwin KiaYang
    Navissi, Farshid
    ACCOUNTING HORIZONS, 2018, 32 (01) : 29 - 51
  • [30] The value of managerial ability and general ability for inventor CEOs
    Lin, Zhilu
    Patel, Pankaj
    Oghazi, Pejvak
    JOURNAL OF BUSINESS RESEARCH, 2021, 135 : 78 - 98
12345