Impact of Management Ability on Financing Policy

Companies in their economic life face various factors that are unpredictable. Companies’ directors, make the required final decisions. Manager needs to have ability to identify company’s position and certain characteristics to make best decisions based on his/her own knowledge. One of the most impo...

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Autores principales:	Mehdi Alinezhad Sarokolaei (Ph.D), Setareh Tarofi
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2017
Materias:	management ability financial leverage debt maturities level of cash holdings Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/3808a1e10c424c7eaa2943587df76791
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spelling	oai:doaj.org-article:3808a1e10c424c7eaa2943587df767912021-11-04T19:52:58ZImpact of Management Ability on Financing Policy2008-89142476-292X10.22103/jak.2017.1679https://doaj.org/article/3808a1e10c424c7eaa2943587df767912017-08-01T00:00:00Zhttps://jak.uk.ac.ir/article_1679_b50d4ada3a96c25634d73d580b36509d.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XCompanies in their economic life face various factors that are unpredictable. Companies’ directors, make the required final decisions. Manager needs to have ability to identify company’s position and certain characteristics to make best decisions based on his/her own knowledge. One of the most important decisions is that relating to company financing. This study examined the effects of management ability on the financing policies of companies. This was followed by analyzing financial statements of 133 companies in the years 2010-2015. To assess the ability of management, the pattern introduced by Demirjian (2012) was used, and to calculate financing policy, the three variables of financial leverage, debt maturity and level of cash holdings were used. The findings showed that management ability has significant positive relationship only with financial leverage that implies managers with high ability of management capacity tend to use financial leverage to make profitable investments and to demonstrate their high potential.Mehdi Alinezhad Sarokolaei (Ph.D)Setareh TarofiShahid Bahonar University of Kermanarticlemanagement abilityfinancial leveragedebt maturitieslevel of cash holdingsAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 8, Iss 2, Pp 159-180 (2017)
institution	DOAJ
collection	DOAJ
language	FA
topic	management ability financial leverage debt maturities level of cash holdings Accounting. Bookkeeping HF5601-5689
spellingShingle	management ability financial leverage debt maturities level of cash holdings Accounting. Bookkeeping HF5601-5689 Mehdi Alinezhad Sarokolaei (Ph.D) Setareh Tarofi Impact of Management Ability on Financing Policy
description	Companies in their economic life face various factors that are unpredictable. Companies’ directors, make the required final decisions. Manager needs to have ability to identify company’s position and certain characteristics to make best decisions based on his/her own knowledge. One of the most important decisions is that relating to company financing. This study examined the effects of management ability on the financing policies of companies. This was followed by analyzing financial statements of 133 companies in the years 2010-2015. To assess the ability of management, the pattern introduced by Demirjian (2012) was used, and to calculate financing policy, the three variables of financial leverage, debt maturity and level of cash holdings were used. The findings showed that management ability has significant positive relationship only with financial leverage that implies managers with high ability of management capacity tend to use financial leverage to make profitable investments and to demonstrate their high potential.
format	article
author	Mehdi Alinezhad Sarokolaei (Ph.D) Setareh Tarofi
author_facet	Mehdi Alinezhad Sarokolaei (Ph.D) Setareh Tarofi
author_sort	Mehdi Alinezhad Sarokolaei (Ph.D)
title	Impact of Management Ability on Financing Policy
title_short	Impact of Management Ability on Financing Policy
title_full	Impact of Management Ability on Financing Policy
title_fullStr	Impact of Management Ability on Financing Policy
title_full_unstemmed	Impact of Management Ability on Financing Policy
title_sort	impact of management ability on financing policy
publisher	Shahid Bahonar University of Kerman
publishDate	2017
url	https://doaj.org/article/3808a1e10c424c7eaa2943587df76791
work_keys_str_mv	AT mehdialinezhadsarokolaeiphd impactofmanagementabilityonfinancingpolicy AT setarehtarofi impactofmanagementabilityonfinancingpolicy
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Impact of Management Ability on Financing Policy

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