Customer Concentration, Managerial Ability, and Corporate Performance.

ABSTRACT: We examined whether and how managerial ability affects the relationship between customer concentration and corporate performance. Based on a novel measure of managerial ability, we found that customer concentration has a significant negative effect on corporate performance, while managerial ability can mitigate this effect. The negative effect of customer concentration is only significant in the subsample of low ability and lower efficiency in asset utilization, while the moderating effect of managerial ability is significant for all levels of asset utilization efficiency and more significant for firms with a lower gross margin. The results are robust to numerous robustness tests and endogeneity concerns. Additional analysis of mechanisms shows that in addition to superior operating abilit

SUBMITTER: Jin G 

PROVIDER: S-EPMC8801520 | biostudies-literature | 2021

REPOSITORIES: biostudies-literature