Structural Analysis of the Interaction of Financial Managers’ Competency Model

Seyyed Mohammad Hassan Mohammadi, Akram Taftiyan, Forough Heirani and Saeed Eslami

International Journal of Economics & Business Administration (IJEBA), 2021, vol. IX, issue 3, 118-136

Abstract: Purpose: Competent financial managers are a tool to develop and increase the organization's productivity as much as possible in changing economic conditions. Selecting the appropriate managers will improve the organization's decisions in all matters. Therefore, the present study aimed to investigate the structural analysis of the interaction of the categories of competency model of financial managers. Design/Methodology/Approach: The research method was applied to purpose and descriptive correlation in terms of a data collection method in a cross-sectional period. In a quantitative method, research hypotheses were formulated and tested using a questionnaire. Then, 368 people were selected from professors and senior managers active in the capital market and financial managers by simple random sampling method. Hypotheses were tested by the structural equation method using PLS software. Confirmatory factor analysis using the least-squares method was used to validate the 18 main variables and competency items of financial managers. Findings: The structural analysis results indicate that causal, contextual, and intervening conditions have a significant effect on the central category phenomenon. The main category has a significant effect on strategies. In addition, strategies have a significant mediating effect on the relationships between the main categories on the consequences. Practical Implications: The competency model of financial managers has a high ability to be implemented and can be used as an effective tool to select competent financial managers. Originality/Value: To develop the issue of competence and efficiency of financial managers, the knowledge enhancement of this study leads to improving the foresight and decisions made by fate and highlights the importance of the dimensions of model categories for organizations.

Keywords: Competency; financial managers; structural equations. (search for similar items in EconPapers)
JEL-codes: C58 G32 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ers:ijebaa:v:ix:y:2021:i:3:p:118-136

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