Managerial ability and firm performance: Evidence from an emerging market

This study empirically examines the impact of managerial ability on firm performance. Using sample 246 firms listed at Pakistan Stock Exchange during 2009 to 2017, this finds that more able managers significantly increase performance while less reduce These findings hold for both accounting and market measures as well alternative ability. Further, we control endogeneity cross-sectional variation issues using 2SLS Fama-MacBeth methods, respectively. Overall, conclude enhance value, effects are stronger in financially constrained firms. provides fresh evidence bring intangible resources firms, which positively contribute even challenging environment weak legal systems.