Agarwal, Vineet, Taffler, Richard J. and Brown, Mike. (2011) Is management quality value relevant? Journal of Business Finance & Accounting, 38 (9-10). pp. 1184-1208. ISSN 0306-686X

Full text not available from this repository.

Abstract

Using a unique database of management quality ratings over a 17 year period, we find that while good management appears to be associated with lower subsequent market returns, this is entirely consistent with an informationally efficient market. Quality of management is value relevant in that better managed firms have lower cost of equity, more stable earnings, higher profitability that persists over time, and higher market valuations using the Ohlson (1995 and 2001) method. Potentially endogenous relationships are unlikely to be driving our results. While well managed firms are good firms, contrary to the belief of many market participants their stocks perform no better than those of poorly managed firms.

Item Type:	Journal Article
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions:	Faculty of Social Sciences > Warwick Business School > Finance Group Faculty of Social Sciences > Warwick Business School
Journal or Publication Title:	Journal of Business Finance & Accounting
Publisher:	Wiley-Blackwell Publishing Ltd.
ISSN:	0306-686X
Date:	November 2011
Volume:	38
Number:	9-10
Page Range:	pp. 1184-1208
Identification Number:	10.1111/j.1468-5957.2011.02267.x
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access
URI:	http://wrap.warwick.ac.uk/id/eprint/49197

Request changes to a record

Actions (login required)

View Item