Related Experiment Video
Updated: Oct 3, 2025
07:48
Eye Tracking During A Complex Aviation Task For Insights Into Information Processing
Published on: April 4, 2025
625
Firm performance during the Covid-19 crisis: Does managerial ability matter?
1Bryant University, Department of Finance, United States.
Finance Research Letters
|February 18, 2022
Summary
High managerial ability in CEOs positively impacts firm performance during the Covid-19 crisis. These leaders demonstrated greater resilience and profitability, partly due to better pre-pandemic liquidity.
Area of Science:
- Business and Economics
- Corporate Governance
- Financial Management
Background:
- The Covid-19 pandemic presented unprecedented challenges to businesses globally.
- CEOs (Chief Executive Officers) needed to adapt operations and strategies to a new working environment.
- The impact of leadership quality on firm performance during crises warrants investigation.
Purpose of the Study:
- To investigate the relationship between CEO managerial ability and firm performance during the Covid-19 crisis.
- To determine if CEO managerial ability influences a firm's resilience and financial returns during economic turmoil.
Main Methods:
- Analysis of firm performance metrics, including cumulative raw returns, abnormal returns, and Return on Equity (ROE).
- Assessment of CEO managerial ability using established metrics.
- Examination of pre-pandemic liquidity as a potential explanatory factor for performance differences.
Main Results:
- A positive and statistically significant association was found between CEO managerial ability and both cumulative raw and abnormal returns.
- Firms led by CEOs with higher managerial ability exhibited greater resilience and superior ROE during the crisis.
- Higher pre-pandemic liquidity in firms with high-ability CEOs partially explained their enhanced performance.
Conclusions:
- CEO managerial ability is a critical factor in navigating corporate challenges during crises like the Covid-19 pandemic.
- Strong leadership, characterized by high managerial ability, enhances firm resilience and financial outcomes.
- Pre-pandemic financial preparedness, such as liquidity, amplifies the positive effects of capable leadership during economic downturns.
More Related Videos
06:17A Task for Assessing the Impact of a Partner on the Speed and Accuracy of Motor Performance in Rats
Published on: October 17, 2019
5.0K
12:22Mindfulness in Motion MIM: An Onsite Mindfulness Based Intervention MBI for Chronically High Stress Work Environments to Increase Resiliency and Work Engagement
Published on: July 1, 2015
23.9K
Related Concept Videos
01:19Managing Impressions
14
Impression management encompasses individuals' deliberate efforts to shape how others perceive them during social interactions. This behavior is often employed to conform to social norms, secure approval, or pursue specific goals. While it involves selective self-presentation, it is not necessarily deceptive; individuals frequently present authentic aspects of themselves that align with situational demands.Common strategies include:Ingratiation: where individuals use flattery or agreeableness...
14
01:26Stress Prevention and Stress Management Techniques I
105
Stress prevention and management are crucial for maintaining well-being and building resilience. Techniques to manage stress include cultivating qualities like conscientiousness, a sense of personal control, and self-efficacy. Each of these traits significantly reduces stress and promotes healthier lifestyle choices and outcomes.
Conscientiousness
Conscientious individuals tend to be organized, responsible, and disciplined. They prioritize completing tasks and following structured routines,...
Conscientiousness
Conscientious individuals tend to be organized, responsible, and disciplined. They prioritize completing tasks and following structured routines,...
105
01:24Factors Affecting Workability
148
The workability of concrete is a critical characteristic that influences the ease of mixing, handling, and finishing the concrete. It is affected by several factors including water content, aggregate properties, and admixtures like air entrainment. Water plays a fundamental role as it lubricates the concrete mix, facilitating easier movement and placement. However, the water requirement varies depending on the texture and shape of aggregates. Finer particles and angular, rough-textured...
148
01:25Impact of Individuals on a Group
26
In social psychology, the interplay between individuals and groups is a central concern, particularly regarding how individual actions and characteristics influence group processes and outcomes. While much research emphasizes the group's power in shaping individual behavior, it is equally significant to understand how individuals contribute to the functioning, development, and success of groups.Individual Roles in Group Productivity and Decision-MakingIndividuals are not passive participants in...
26
01:29Impression Management Techniques I: Managing Appearances
18
Appearance is a multidimensional aspect of self-presentation that encompasses observable attributes such as clothing, grooming, speech, and nonverbal behavior. These elements are often strategically managed to align with socially constructed expectations in different settings. For instance, individuals tailor their appearance during job interviews, social gatherings, or athletic events to meet the perceived norms of those environments.Contextual Adaptation and Social SignalsThe research...
18
01:04Social Facilitation
33.5K
Not all intergroup interactions lead to negative outcomes. Sometimes, being in a group situation can improve performance. Social facilitation occurs when an individual performs better when an audience is watching than when the individual performs the behavior alone. This typically occurs when people are performing a task for which they are skilled.
33.5K