| چکیده انگلیسی مقاله |
Objective Given that managers are central to foundational theories such as the agency theory, stewardship theory, and contracts theory, the concept of managerial ability and its measurement has attracted the researchers' attention. A recent dominant perspective emphasizes that a manager's ability is reflected in the firm's performance. Therefore, measuring managerial ability depends on distinguishing the manager's performance from the firm's performance. The greater the manager's contribution to the company's performance, the higher their ability is considered to be. The current study seeks to develop a model to measure managerial ability, regarding the unique circumstances of the country in which the companies operate. Methods To develop a model for measuring managerial ability, a comprehensive approach was employed, including a systematic literature review, interpretive analysis of expert interviews, and descriptive methodologies. The systematic literature review involved examining domestic and international studies, as well as reliable information sources and databases, based on relevant keywords. Interpretive analysis was conducted on interviews with experts such as executive managers, financial managers, internal and external auditors, and academics, using chain sampling. To test and validate the model, data from 158 firms listed on the Tehran Stock Exchange (TSE) across 12 industries from 2012 to 2021 were utilized. Triangulation was applied to assess the research validity, considering multiple dimensions such as methodology, data, and researchers. This rigorous approach ensures the reliability and robustness of the model developed for measuring managerial ability. Results According to the research findings, this study focuses on three areas of performance indicators (PI), namely operational, financing, and dividend performance indicators. The performance indicators, as the dependent variable, represent different aspects of firm performance based on the managers' decision-making process and the status of firms in the real world. Variables such as firm size, firm age, the percentage of active institutional shareholders, export sales, and transactions with related parties represent the inherent characteristics of each company as independent variables. Environmental conditions and performance indicators are very important in determining related variables. By running Tobit regression, the residual value is considered as managerial ability measurement or managers’ contribution to firm performance. Furthermore, the comparison of the designed model and the model developed by Demerjian et al. (2012), as the most widely used model in prior literature, in terms of log-likelihood and information criteria including Akaike Information Criterion (AIC), Schwarz Criterion (SC), and Hannan-Quinn Criterion (HQ) at the overall and industry-specific levels shows that our model has higher goodness-of-fit. Conclusion Generally, by combining operational, financing, and profit distribution indicators, as well as considering shareholder structure and intra-group transactions, the proposed model can provide a more proper measurement of managerial effectiveness, and it can be used as a basis for selecting managers and determining appropriate remuneration methods. |