Journal article
Dupes or Incompetents? An Examination of Management's Impact on Firm Distress
The Journal of risk and insurance, Vol.79(3), pp.751-783
09/2012
DOI: 10.1111/j.1539-6975.2011.01443.x
Abstract
This article examines whether managers impact firm performance. We conservatively define managerial ability as the manager's capacity to deploy the firm's resources. We verify the validity of our metric using a managerfirm matched panel data set that allows us to track managers (CEOs) across different firms over time. We find managerial ability is inversely related to the amount of time a firm spends in distress, the likelihood of a firm's failure, and the cost of failure. These results suggest that the managers of failed firms are less skilled than their counterparts. But even within failed firms there is heterogeneity in the talents of managers.
Details
- Title: Subtitle
- Dupes or Incompetents? An Examination of Management's Impact on Firm Distress
- Creators
- J. Tyler Leverty - University of IowaMartin F. Grace - Georgia State University
- Resource Type
- Journal article
- Publication Details
- The Journal of risk and insurance, Vol.79(3), pp.751-783
- Publisher
- Wiley
- DOI
- 10.1111/j.1539-6975.2011.01443.x
- ISSN
- 0022-4367
- eISSN
- 1539-6975
- Number of pages
- 33
- Language
- English
- Date published
- 09/2012
- Academic Unit
- Finance
- Record Identifier
- 9984700650002771
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