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Does top managers’ skills moderate the debt-stock returns relationship in Malaysia?

Traditional theorists recognize that stockholders benefit from top managers’ decisions; but, top managers’ skills are not explicitly analysed in their theoretical model. This article examines the moderating effects of top managers’ skills on the debt-stock return relationship. The two-step system ge...

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Main Authors: Matemilola, Bolaji Tunde, Amin Noordin, Bany Ariffin, Wan Ngah, Wan Azman Saini
Format: Article
Language:English
Published: Universiti Malaysia Sarawak 2019
Online Access:http://psasir.upm.edu.my/id/eprint/79438/1/Does%20top%20managers%E2%80%99%20skills%20moderate%20the%20debt-stock%20returns%20relationship%20in%20Malaysia.pdf
http://psasir.upm.edu.my/id/eprint/79438/
http://www.ijbs.unimas.my/index.php/content-abstract/current-issue/629-does-top-managers-skills-moderate-the-debt-stock-returns-relationship-in-malaysia
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spelling my.upm.eprints.794382021-04-07T11:38:59Z http://psasir.upm.edu.my/id/eprint/79438/ Does top managers’ skills moderate the debt-stock returns relationship in Malaysia? Matemilola, Bolaji Tunde Amin Noordin, Bany Ariffin Wan Ngah, Wan Azman Saini Traditional theorists recognize that stockholders benefit from top managers’ decisions; but, top managers’ skills are not explicitly analysed in their theoretical model. This article examines the moderating effects of top managers’ skills on the debt-stock return relationship. The two-step system generalized method of moments results show top managers skills positively moderate the book debt and stock return relationship. Moreover, top managers’ skills have direct positive effect on stock returns. The results are robust using an alternative measure of debt, as top managers’ skills positively moderate the market debt and stock returns relationship. The findings suggest that top managers’ possessing strong skills maximize tax-shield benefits of debt and they increase stockholders’ returns. Universiti Malaysia Sarawak 2019 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/79438/1/Does%20top%20managers%E2%80%99%20skills%20moderate%20the%20debt-stock%20returns%20relationship%20in%20Malaysia.pdf Matemilola, Bolaji Tunde and Amin Noordin, Bany Ariffin and Wan Ngah, Wan Azman Saini (2019) Does top managers’ skills moderate the debt-stock returns relationship in Malaysia? International Journal of Business and Society, 20 (3). pp. 1048-1061. ISSN 1511-6670 http://www.ijbs.unimas.my/index.php/content-abstract/current-issue/629-does-top-managers-skills-moderate-the-debt-stock-returns-relationship-in-malaysia
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description Traditional theorists recognize that stockholders benefit from top managers’ decisions; but, top managers’ skills are not explicitly analysed in their theoretical model. This article examines the moderating effects of top managers’ skills on the debt-stock return relationship. The two-step system generalized method of moments results show top managers skills positively moderate the book debt and stock return relationship. Moreover, top managers’ skills have direct positive effect on stock returns. The results are robust using an alternative measure of debt, as top managers’ skills positively moderate the market debt and stock returns relationship. The findings suggest that top managers’ possessing strong skills maximize tax-shield benefits of debt and they increase stockholders’ returns.
format Article
author Matemilola, Bolaji Tunde
Amin Noordin, Bany Ariffin
Wan Ngah, Wan Azman Saini
spellingShingle Matemilola, Bolaji Tunde
Amin Noordin, Bany Ariffin
Wan Ngah, Wan Azman Saini
Does top managers’ skills moderate the debt-stock returns relationship in Malaysia?
author_facet Matemilola, Bolaji Tunde
Amin Noordin, Bany Ariffin
Wan Ngah, Wan Azman Saini
author_sort Matemilola, Bolaji Tunde
title Does top managers’ skills moderate the debt-stock returns relationship in Malaysia?
title_short Does top managers’ skills moderate the debt-stock returns relationship in Malaysia?
title_full Does top managers’ skills moderate the debt-stock returns relationship in Malaysia?
title_fullStr Does top managers’ skills moderate the debt-stock returns relationship in Malaysia?
title_full_unstemmed Does top managers’ skills moderate the debt-stock returns relationship in Malaysia?
title_sort does top managers’ skills moderate the debt-stock returns relationship in malaysia?
publisher Universiti Malaysia Sarawak
publishDate 2019
url http://psasir.upm.edu.my/id/eprint/79438/1/Does%20top%20managers%E2%80%99%20skills%20moderate%20the%20debt-stock%20returns%20relationship%20in%20Malaysia.pdf
http://psasir.upm.edu.my/id/eprint/79438/
http://www.ijbs.unimas.my/index.php/content-abstract/current-issue/629-does-top-managers-skills-moderate-the-debt-stock-returns-relationship-in-malaysia
_version_ 1696977672731623424
score 13.211869

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