Abstract

The current study focused on investigating the influence of management ability on the investment opportunity and firm performance. The managerial ability has a strategic impact on firm performance and value. Secondary data was employed. The study takes 369 non-financial firms as a population of the study and 196 firms as sample size selected randomly. The data was collected from 2008 to 2017. The managerial ability, cash holdings and dividend payout have a significant effect on the firm performance (ROA). Corporate governance has significant effects on the independent variables and ROA. The findings suggested that managerial ability, cash holdings and dividend payout have significant effects on firm investment opportunities (total Q). Corporate governance has positive and significant effects among independent variables and total Q (TTQ). It has been recommended that managers with superior abilities correlate themselves with a better investment opportunity.

Authors

1-Kamran Nawaz
PhD Scholar, Department of Management Sciences, Iqra National University Peshawar, KP, Pakistan.

2-Farzand Ali Jan
Professor/Vice Chancellor, Department of Management Sciences, Iqra National University Peshawar, KP, Pakistan.

3-Syed Kashif Shah
MS Scholar, Department of Management Sciences, Behria University Islamabad, Pakistan.

Keywords

Managerial Ability, Investment Opportunity, Firm Performance, NonFinancial, OLS, Fixed Effect.

DOI Number

10.31703/ger.2020(V-I).26

Page Nos

309-324

Volume

V

Issue

I