Managerial Ability and Debt Choice.
Using a sample of 54,964 firm‐year observations of US public firms during the period 2001 to 2020, we investigate how managerial ability affects corporate debt choice. We find evidence that managerial ability is negatively associated with the use of bank debt. This finding remains robust to a batter...
| Publicado en: | Abacus Vol. 61; no. 2; pp. 304 - 345 |
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| Autores principales: | , , , |
| Formato: | Artículo |
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Wiley-Blackwell
Jun2025
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=185659965&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 185659965 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00013072 AUB jtl: Abacus issn: 00013072 maglogo: Y pubinfo: dt: Jun2025 vid: 61 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 185659965 10.1111/abac.12334 ppf: 304 ppct: 41 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 572KB tig: atl: Managerial Ability and Debt Choice. aug: au: Alam, Md Samsul Hasan, Mostafa Monzur Alam, Nurul Islam, Md Shahidul affil: Derby Business School, University of Derby,, UK Department of Accounting and Corporate Governance, Macquarie Business School, Macquarie University, Sydney NSW, 2109,, Australia The University of Sydney Business School, The University of Sydney, Camperdown NSW, 2006,, Australia Essex Business School, University of Essex,, UK su: Executive ability (Management) Corporate debt Economic impact Corporate governance Machine learning Debt management Bank loans Organizational performance United States sug: subj: United States Executive ability (Management) Corporate debt Economic impact Corporate governance Machine learning Debt management Bank loans Organizational performance keyword: Debt choice Financial constraints Information asymmetry Managerial ability ab: Using a sample of 54,964 firm‐year observations of US public firms during the period 2001 to 2020, we investigate how managerial ability affects corporate debt choice. We find evidence that managerial ability is negatively associated with the use of bank debt. This finding remains robust to a battery of robustness tests, including alternative measures of managerial ability and debt choice, various econometric specifications, and a range of endogeneity tests. Using the sudden death of the CEO as an exogenous shock to managerial ability, our difference‐in‐differences regression suggests a negative causal relationship between managerial ability and reliance on bank debt. Further, using advanced machine learning models, we identify that managerial ability is a highly influential variable in predicting firms' debt choices. Our cross‐sectional tests indicate that this relationship is more pronounced in the presence of higher information opacity, weaker corporate governance, and poor financial conditions. In additional tests, we show that firms with more able managers use more unsecured debt and public debt. Taken together, our findings suggest that managerial ability matters in shaping corporate debt choice. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y custom: Copyright of Abacus is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. item: Abacus holder: Wiley-Blackwell dt: @attributes: year: 2025 holdings: @attributes: islocal: N |
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