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Firm Management Competence: Does It Matter?


  • Konstantinos S. Skandalis

    (Department of Economics, University of Peloponnese, Greece)

  • Panagiotis G. Liargovas

    (Department of Economics, University of Peloponnese, Greece)

  • Anna A. Merika

    (Department of Economics, Deree College, Greece)


This study explores the influence of financial leverage and of management competence on firm performance using a sample of 102 listed firms in the Athens Stock Exchange. It is found that leverage contributes significantly to sales growth, stock returns, and profitability due to management competence.

Suggested Citation

  • Konstantinos S. Skandalis & Panagiotis G. Liargovas & Anna A. Merika, 2008. "Firm Management Competence: Does It Matter?," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 7(2), pages 167-180, August.
  • Handle: RePEc:ijb:journl:v:7:y:2008:i:2:p:167-180

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    References listed on IDEAS

    1. Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-329, May.
    2. Hossein Asgharian, 2003. "Are highly leveraged firms more sensitive to an economic downturn?," The European Journal of Finance, Taylor & Francis Journals, vol. 9(3), pages 219-241.
    3. Klevmarken, N. Anders, 1989. "Introduction," European Economic Review, Elsevier, vol. 33(2-3), pages 523-529, March.
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    More about this item


    management competence; leverage; Athens Stock Exchange;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics


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