Does Analysts Fully Understand the Implications of Managerial Ability for Future Earnings?

  • 陳 映華

Student thesis: Doctoral Thesis

Abstract

Management plays a vital role in corporate management The purpose of this paper is to explore: (1) the association between managerial ability and firm performance and (2) whether analysts can understand the implication of managerial ability regarding future performance Empirical results show that managerial ability is positively associated with firm’s future profitability which means corporate with better managerial ability has high profitability in the next year; However it is difficult for analysts to incorporate information about managerial ability into future earnings Thus analysts fail to fully understand the impact of managerial ability on future earnings Additional analysis indicates that the above results only exist in low-growth firms
Date of Award2021
Original languageEnglish
SupervisorTing-Kai Chou (Supervisor)

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