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Managerial ability and investment decisions: Evidence from Chinese market

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  • Rehana Naheed
  • Muhammad Jawad
  • Munazza Naz
  • Bushra Sarwar
  • Rukhsana Naheed

Abstract

Policymakers/researchers have developed a lot of theories and empirics to study issues related to investment policy. The current study investigcates in detail the managerial role in a firm's investment decision. This study is evident that the relationship is more profound for the firms that are large and financially unconstrained and have a strong balance sheet position. For economic constraints, the effect for SO firms is more pertinent than non‐state‐owned (NSO) firms, and the negative effect of competition and recession is decreased by high ability managers. For mitigating the effect of endogeneity and getting robust results, a propensity score matching approach is to be used.

Suggested Citation

  • Rehana Naheed & Muhammad Jawad & Munazza Naz & Bushra Sarwar & Rukhsana Naheed, 2021. "Managerial ability and investment decisions: Evidence from Chinese market," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(4), pages 985-997, June.
    • Handle: RePEc:wly:mgtdec:v:42:y:2021:i:4:p:985-997
    DOI: 10.1002/mde.3287
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    2. Gaurav Gupta, 2022. "CEO's age and investment‐cash flow sensitivity," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2212-2224, September.
    3. Emmanuel Adu‐Ameyaw & Albert Danso & Linda Hickson, 2022. "Growth opportunity and investment policy: The role of managerial incentives," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3634-3646, December.

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