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Channels of Managerial Capital Accumulation - A Framework and New Evidence from UK Microdata

Author

Listed:
  • Anna Ardanaz-Badia
  • Josh Martin
  • Mika Morgan
  • Jakob Scheebacher

Abstract

Organisational capital is usually estimated indirectly, from workforce data or as a residual from balance sheets. In this paper, we focus on a particular subset of organisational capital: managerial capital. We propose a comprehensive framework for measuring the contribution of different channels of managerial capital accumulation, investigate how to measure them in UK microdata sources, and highlight the trade-offs involved in the available choices. We then use novel evidence on the distribution of management scores in Great Britain from the Management and Expectations Survey (MES) to empirically assess the relative importance of these different accumulation channels. Our analysis provides a user guide for other researchers and new facts about managerial capital in Great Britain. We find high correlations between the different channels of managerial capital accumulation, and distinct bundles of choices across industries and types of firms.

Suggested Citation

  • Anna Ardanaz-Badia & Josh Martin & Mika Morgan & Jakob Scheebacher, 2022. "Channels of Managerial Capital Accumulation - A Framework and New Evidence from UK Microdata," Economic Statistics Centre of Excellence (ESCoE) Discussion Papers ESCoE DP-2022-15, Economic Statistics Centre of Excellence (ESCoE).
    • Handle: RePEc:nsr:escoed:escoe-dp-2022-15
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    References listed on IDEAS

    as
    1. Sandra E. Black & Lisa M. Lynch, 2005. "Measuring Organizational Capital in the New Economy," NBER Chapters, in: Measuring Capital in the New Economy, pages 205-236, National Bureau of Economic Research, Inc.
    2. Haskel, J & Goodridge, P & Wallis, G, 2014. "Estimating UK investment in intangible assets and Intellectual Property Rights," Working Papers 13168, Imperial College, London, Imperial College Business School.
    3. Martin, Josh, 2019. "Measuring the Other Half: New Measures of Intangible Investment from the ONS," National Institute Economic Review, National Institute of Economic and Social Research, vol. 249, pages 17-29, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    intangible assets; management; managerial capital; organisational capital;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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