Managerial Ability, Financial Performance and Bankruptcy Risk

With regard to managers’ important roles in success of companies, the main purpose of this study is to examine the effects of managerial ability on the bankruptcy risk of the Iranian firms listed in the Tehran Stock Exchange, (TSE), and the mediating role of financial performance in that risk. In th...

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Autores principales:	Shokrollah Khajavi (Ph.D), MohammadHossein Ghadirian Arani
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2018
Materias:	managerial ability financial performance bankruptcy risk Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/9c67d3b92e324aaea854272da28e5d98
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spelling	oai:doaj.org-article:9c67d3b92e324aaea854272da28e5d982021-11-04T19:53:43ZManagerial Ability, Financial Performance and Bankruptcy Risk2008-89142476-292X10.22103/jak.2018.10371.2412https://doaj.org/article/9c67d3b92e324aaea854272da28e5d982018-04-01T00:00:00Zhttps://jak.uk.ac.ir/article_1930_1d9004394cd1b9d8c172d9814b5f236d.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XWith regard to managers’ important roles in success of companies, the main purpose of this study is to examine the effects of managerial ability on the bankruptcy risk of the Iranian firms listed in the Tehran Stock Exchange, (TSE), and the mediating role of financial performance in that risk. In this study, the data came from a sample of 103 non-financing companies in the TSE from 2004 to 2015. Managerial ability of the companies was measured by the Demirjian’s model (2012). Moreover, the rate of return on assets was applied as a proxy of financial performance, and Emerging Market Scoring model (Altman's Z˝ score) was used as a measure of bankruptcy risk. The results showed that managerial ability has negative impact on bankruptcy risk. And, financial performance mediates the effect of managerial ability on bankruptcy risk. In other words, managerial ability reduces the bankruptcy risk through improving financial performance. Therefore, it could be concluded that managerial ability is an important factor in the success of the companies in TSE.Shokrollah Khajavi (Ph.D)MohammadHossein Ghadirian AraniShahid Bahonar University of Kermanarticlemanagerial abilityfinancial performancebankruptcy riskAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 9, Iss 1, Pp 35-61 (2018)
institution	DOAJ
collection	DOAJ
language	FA
topic	managerial ability financial performance bankruptcy risk Accounting. Bookkeeping HF5601-5689
spellingShingle	managerial ability financial performance bankruptcy risk Accounting. Bookkeeping HF5601-5689 Shokrollah Khajavi (Ph.D) MohammadHossein Ghadirian Arani Managerial Ability, Financial Performance and Bankruptcy Risk
description	With regard to managers’ important roles in success of companies, the main purpose of this study is to examine the effects of managerial ability on the bankruptcy risk of the Iranian firms listed in the Tehran Stock Exchange, (TSE), and the mediating role of financial performance in that risk. In this study, the data came from a sample of 103 non-financing companies in the TSE from 2004 to 2015. Managerial ability of the companies was measured by the Demirjian’s model (2012). Moreover, the rate of return on assets was applied as a proxy of financial performance, and Emerging Market Scoring model (Altman's Z˝ score) was used as a measure of bankruptcy risk. The results showed that managerial ability has negative impact on bankruptcy risk. And, financial performance mediates the effect of managerial ability on bankruptcy risk. In other words, managerial ability reduces the bankruptcy risk through improving financial performance. Therefore, it could be concluded that managerial ability is an important factor in the success of the companies in TSE.
format	article
author	Shokrollah Khajavi (Ph.D) MohammadHossein Ghadirian Arani
author_facet	Shokrollah Khajavi (Ph.D) MohammadHossein Ghadirian Arani
author_sort	Shokrollah Khajavi (Ph.D)
title	Managerial Ability, Financial Performance and Bankruptcy Risk
title_short	Managerial Ability, Financial Performance and Bankruptcy Risk
title_full	Managerial Ability, Financial Performance and Bankruptcy Risk
title_fullStr	Managerial Ability, Financial Performance and Bankruptcy Risk
title_full_unstemmed	Managerial Ability, Financial Performance and Bankruptcy Risk
title_sort	managerial ability, financial performance and bankruptcy risk
publisher	Shahid Bahonar University of Kerman
publishDate	2018
url	https://doaj.org/article/9c67d3b92e324aaea854272da28e5d98
work_keys_str_mv	AT shokrollahkhajaviphd managerialabilityfinancialperformanceandbankruptcyrisk AT mohammadhosseinghadirianarani managerialabilityfinancialperformanceandbankruptcyrisk
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Managerial Ability, Financial Performance and Bankruptcy Risk

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