Firm performance during the Covid-19 crisis: Does managerial ability matter?

Challenged by the Covid-19 crisis, CEOs must rethink about how to operate and exist in the new working environment. We examine if managerial ability of the CEO impacts firm performance during the crisis period. We find a positive and significant association between the CEO managerial ability and bot...

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Detalles Bibliográficos
Autores principales: Kumar, Sonal, Zbib, Leila
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier Inc. 2022
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8830177/
https://www.ncbi.nlm.nih.gov/pubmed/35177959
http://dx.doi.org/10.1016/j.frl.2022.102720
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author Kumar, Sonal
Zbib, Leila
author_facet Kumar, Sonal
Zbib, Leila
author_sort Kumar, Sonal
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description Challenged by the Covid-19 crisis, CEOs must rethink about how to operate and exist in the new working environment. We examine if managerial ability of the CEO impacts firm performance during the crisis period. We find a positive and significant association between the CEO managerial ability and both the cumulative raw and abnormal returns. We also find that firms with better CEO managerial ability are more resilient and have higher ROE than their counterparts. We find that the CEOs with higher managerial ability have higher pre-pandemic liquidity which in part explains the better performance amid the Covid-19 crisis.
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spelling pubmed-88301772022-02-11 Firm performance during the Covid-19 crisis: Does managerial ability matter? Kumar, Sonal Zbib, Leila Financ Res Lett Article Challenged by the Covid-19 crisis, CEOs must rethink about how to operate and exist in the new working environment. We examine if managerial ability of the CEO impacts firm performance during the crisis period. We find a positive and significant association between the CEO managerial ability and both the cumulative raw and abnormal returns. We also find that firms with better CEO managerial ability are more resilient and have higher ROE than their counterparts. We find that the CEOs with higher managerial ability have higher pre-pandemic liquidity which in part explains the better performance amid the Covid-19 crisis. Elsevier Inc. 2022-06 2022-02-10 /pmc/articles/PMC8830177/ /pubmed/35177959 http://dx.doi.org/10.1016/j.frl.2022.102720 Text en © 2022 Elsevier Inc. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Kumar, Sonal
Zbib, Leila
Firm performance during the Covid-19 crisis: Does managerial ability matter?
title Firm performance during the Covid-19 crisis: Does managerial ability matter?
title_full Firm performance during the Covid-19 crisis: Does managerial ability matter?
title_fullStr Firm performance during the Covid-19 crisis: Does managerial ability matter?
title_full_unstemmed Firm performance during the Covid-19 crisis: Does managerial ability matter?
title_short Firm performance during the Covid-19 crisis: Does managerial ability matter?
title_sort firm performance during the covid-19 crisis: does managerial ability matter?
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8830177/
https://www.ncbi.nlm.nih.gov/pubmed/35177959
http://dx.doi.org/10.1016/j.frl.2022.102720
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