Firm performance during the Covid-19 crisis: Does managerial ability matter?

Sonal Kumar and Leila Zbib

Finance Research Letters, 2022, vol. 47, issue PB

Abstract: Challenged by the Covid-19 crisis, CEOs must rethink about how to operate and exist in the new working environment. We examine if managerial ability of the CEO impacts firm performance during the crisis period. We find a positive and significant association between the CEO managerial ability and both the cumulative raw and abnormal returns. We also find that firms with better CEO managerial ability are more resilient and have higher ROE than their counterparts. We find that the CEOs with higher managerial ability have higher pre-pandemic liquidity which in part explains the better performance amid the Covid-19 crisis.

Keywords: CEO Managerial Ability; Covid-19; Firm Performance; Firm Liquidity (search for similar items in EconPapers)
JEL-codes: G01 G14 G32 J24 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:47:y:2022:i:pb:s1544612322000459

DOI: 10.1016/j.frl.2022.102720

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