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The effect of managerial ability on workplace safety

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  • Gao, Jingru
  • Dong, Yunhe

Abstract

We examine the impact of managerial ability on workplace safety. We provide robust evidence that managerial ability is positively associated with workplace injuries. Cross-sectional analyses reveal that this effect is attenuated in firms led by female CEOs or CEOs reaching the retirement age but is more pronounced in firms with higher sales growth or greater revenue volatility. Additional tests suggest that high-ability managers are more likely to increase employee workloads which may provide a potential explanation for the underlying mechanism.

Suggested Citation

  • Gao, Jingru & Dong, Yunhe, 2025. "The effect of managerial ability on workplace safety," Finance Research Letters, Elsevier, vol. 85(PB).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pb:s1544612325012620
    DOI: 10.1016/j.frl.2025.108004
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    References listed on IDEAS

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