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https://doi.org/10.1080/1331677X.2021.2004186

Does managerial ability affect corporate financial constraints? Evidence from China

Qiubin Huang
Mengyuan Xiong
Ming Xiao


Puni tekst: engleski pdf 2.182 Kb

str. 3731-3753

preuzimanja: 320

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Sažetak

We study the effect of managerial ability on financial constraints
of Chinese listed companies. Our results indicate a negative relationship between managerial ability and corporate financial constraints. Further analyses show that managerial ability helps
alleviate financial constraints probably through lowering information asymmetry, reducing agency conflicts and enhancing corporate profitability. In addition, we find evidence that private firms
suffer from more severe financial constraints than state- and foreign-owned firms, and the effect of managerial ability in alleviating financial constraints is more pronounced for private firms.
Overall, our findings help understand the role and highlight the
importance of managerial ability in alleviating financial
constraints.

Ključne riječi

Financial constraints; managerial ability; investment-cash flow sensitivity; information asymmetry; agency conflicts; ownership structure

Hrčak ID:

302621

URI

https://hrcak.srce.hr/302621

Datum izdavanja:

31.3.2023.

Posjeta: 580 *