Corporate policies and outcomes during the COVID-19 crisis: Does managerial ability matter?

ABSTRACT: The devastating impacts of the COVID-19 pandemic have forced firms to formulate strategies that can help them effectively cope with the crisis. In this study, we investigate whether and how managerial ability affects the corporate policies during the COVID-19 crisis. Specifically, we investigate how managerial ability affects the policies of firms related to investment, financing, cash holdings, and dividend payouts. We also explore whether firm performance is influenced by managerial ability. Using quarterly data of Chinese firms during 2020, results show that firms with higher ability managers reduce their investments, financing, and cash holdings, yet increase their dividend payouts during the COVID-19 crisis. Findings also indicate that firms having more capable managers tend to outper

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PROVIDER: S-EPMC8915744 | biostudies-literature | 2022 Mar

REPOSITORIES: biostudies-literature