Inventory overproduction and managerial ability

PurposeThis paper aims to examine the effects of managerial ability (MA) on the likelihood and the timeliness of goodwill impairment and explore whether the desirable effect of MA vary with the degree of agency problems.Design/methodology/approachThe authors propose a unified framework to simultaneously examine the effects of MA on the likelihood and the timeliness of goodwill impairment by incorporating a market-based impairment indicator (denoted as BTM), MA and the interaction of BTM with MA to this study’s regression model to account for the likelihood of goodwill impairment. BTM addresses the timeliness of goodwill impairment.FindingsThis study finds that firms with higher MA have lower likelihood of goodwill impairment, and such firms are more likely to recognize goodwill impairment in a timely manner when the underlying value of goodwill is economically impaired. This desirable effect of MA is more pronounced in non-state-owned enterprise (SOEs) and firms without chief executive officer (CEO) duality.Practical implicationsFirms can reduce the losses arising from goodwill impairment by enhancing the ability of their management teams combined with improved corporate governance structure.Originality/valueThis paper provides novel insights on understanding the role of MA in not only reducing the likelihood but also enhancing the timeliness of goodwill impairment. The findings help advance the upper echelons theory by uncovering the heterogenous effects of executives with different levels of ability.

This study attempted to determine the effectiveness of test messaging items for certain language skills. It sought to find out what skills can be measured by text messaging test items, to determine the efficiency of text messaging items for testing certain language skills, and the effectiveness of the testing instruments in assessing certain language performance. The research employed written text analysis. A sample test composed of three sets of text messages in three forms, Filipino text, Taglish text, and English text messages were made. A short paragraph in Filipino, Taglish, and English were transcribed into text messages by senior Education students who are majoring in English. After comparisons, they came up with the best text translation of the items. The test items were administered to freshmen Education students of the Southern Luzon State University. The subjects were asked to transcribe the messages in complete sentences. Results reveal that text messaging test items measure the respondents' competencies in reading comprehension, grammatical structures, phonetic ability, and usage. Based from the computed mean for different skills, the study revealed that the students have high level of comprehension in three languages used, high level of ability in grammatical structure in Filipino and average level of ability in grammatical construction in English; high level of ability in phonetics in Filipino and English based from their spelling of words; and high level of ability in correct usage based from their sentence construction.

The aim of study was to investigate characteristics of neurodystrophic changes in neurons and glia of the motor cortex in rats with different levels of cognitive functions under bilateral ligation of the common carotid arteries. Material and methods . The study included 136 Wistar rats. All animals were divided into two subgroups based on the results of the Morris water maze test: with high and low level of ability to spatial learning. Animals of the experimental group were removed from the experiment on the 1st, 6th, 14th, 21st, 35th, 60th and 90th days after bilateral ligation of both carotid arteries. Histological sections of the motor cortex were studied using Nissl and hematoxylin-eosin staining. Results . In 1, 6 and 8 days after ischemia, the number of neurons with irreversible changes and dead cells reached their maximum for the entire time of observation. On the 8th day of study, compact groups of glial cells appeared near the vessels. Heterochrony was noted: in animals with high level of cognitive ability, an increase in the number of neurons with irreversible changes followed the peak of cell death; in animals with low level, on the contrary, the maximum number of dead cells was observed on the 6th day, and the maximum number of neurons with irreversible changes – on the 1st. On the 14th, 21st, and 28th days there was observed a gradual stabilization of indicators characterizing damage to the cerebral cortex. Average values of the perikarya area and neurons nuclei increased, the nuclear-cytoplasmic ratio decreased, and intracellular swelling was noted. After 35 days, areas of the cortex depleted in bodies of neurons and glia appeared; the number of neurons with irreversible changes increased, to a greater extent, in animals with high level of cognitive abilities. Typical trends of the first month of study are as follows: a decrease in the nuclear-cytoplasmic ratio and a number of neurons without irreversible changes, and an increase in the neuroglial index continued to progress on the 60th and 90th days of study. The apical dendrites of the pyramidal neurons obtained a corkscrew course. Compact groups of glial cells disappeared. Conclusion . During the first week of cerebral hypoperfusion, irreversible changes in neurons predominated, in the second and third weeks, the morphological criteria of their functional activity decreased. In the fourth and fifth weeks incomplete adaptation developed in the form of an increased number of neurons near the vessels of the hemocirculatory bed and an increased number of satellite gliocytes by immersing them in the cytoplasm of neurons. In 2-3 months after cerebral hypoperfusion, signs of acute hypoxia reappeared. Animals with high level of cognitive ability were characterized by large damage to the structures of the neuroglial ensemble.

هدف البحث: قياس أثر العلاقة التفاعلية بين المقدرة الإدارية وممارسات إدارة الأرباح على مستوى الإحتفاظ بالنقدية فى الشركات غير المالية المقيدة بالبورصة المصرية. منهجية البحث: اعتمدت الدراسة على المنهج الوصفى التحليلى والذى يجمع بين كل من التحليل النظرى لأهم الأدبيات المختلفة ذات العلاقة بموضوع البحث، وأيضاً إجراء دراسة تطبيقية اعتمدت على مدخل تحليل المحتوى فى فحص البيانات التاريخية الفعلية بالقوائم المالية السنوية، لعينة من (128) شركة من الشركات غير المالية المقيدة بالبورصة المصرية خلال الفترة من عام 2010 حتى عام 2020م، بإجمالى عدد مشاهدات 1408 مشاهدة، لاختبار فروض البحث والتى تعكس أثر العلاقة التفاعلية بين المقدرة الإدارية وممارسات إدارة الأرباح على مستوى الإحتفاظ بالنقدية، وذلك باستخدام مجموعة من الأساليب الإحصائية والتى تتمثل فى؛ معامل ارتباط بيرسون ونموذج الانحدار الخطى. نتائج البحث: أوضحت نتائج الدراسة التطبيقية؛ أولاً: وجود تأثير إيجابى ومعنوى للمقدرة الإدارية على إدارة الأرباح باستخدام الاستحقاق المحاسبى فى الشركات غير المالية المقيدة بالبورصة المصرية. ثانياً: وجود تأثير سلبى ومعنوى للمقدرة الإدارية على إدارة الأرباح باستخدام الأنشطة الحقيقية فى الشركات غير المالية المقيدة بالبورصة المصرية. ثالثاً: وجود تأثير إيجابى ومعنوى للمقدرة الإدارية على مستوى الإحتفاظ بالنقدية فى الشركات غير المالية المقيدة بالبورصة المصرية. رابعاً: عدم وجود تأثير معنوى للعلاقة التفاعلية بين المقدرة الإدارية وإدارة الأرباح باستخدام الاستحقاق المحاسبى على مستوى الإحتفاظ بالنقدية فى الشركات غير المالية المقيدة بالبورصة المصرية. خامسا: وجود تأثير سلبى ومعنوى للعلاقة التفاعلية بين المقدرة الإدارية وإدارة الأرباح باستخدام الأنشطة الحقيقية على مستوى الإحتفاظ بالنقدية فى الشركات غير المالية المقيدة بالبورصة المصرية. الأصالة والإضافة العلمية للبحث: تظهر المساهمة العلمية للبحث فى تناوله لإحدى القضايا الجدلية التى شكلت محوراً لاهتمام البحث المحاسبى الأكاديمى، وهى قضية ممارسات إدارة الأرباح وعلاقتها بكل من المقدرة الإدارية ومستوى الإحتفاظ بالنقدية، خاصة فى ظل عدم اهتمام أى من الدراسات السابقة ذات الأدلة التطبيقية– فى حدود ما اطلعت عليه الباحثة – بالتناول المباشر والتفصيلى لأثر العلاقة التفاعلية بين المقدرة الإدارية وممارسات إدارة الأرباح على مستوى الإحتفاظ بالنقدية فى الشركات غير المالية المقيدة بالبورصة المصرية. كما يعد هذا البحث استكمالاً للبحوث المرتبطة بأسواق المال ونجاح الشركات فى استمرارية نشاطها، وبالتالى يمكن للمستثمرين ومديرى الشركات وغيرهم من أصحاب المصالح الاستفادة من نتائجه فى ترشيد قراراتهم المالية والاستثمارية.

PurposeThis research aims to examine the moderating role of green chief executive officer (CEO) in the effect of managerial ability (MA) on environmental performance (ENV).Design/methodology/approachThis research’s sample consists of 197 manufacturing firm-years that are listed on the Indonesian Stock Exchange and the Program Penilaian Peringkat Kinerja Perusahaan Dalam Pengelolaan Lingkungan Hidup (PROPER) participants. Data analysis use industry- and year-effect regression analysis.FindingsThe result shows that MA improves ENV when led by a green CEO. It indicates that a green CEO with higher MA considers environmental responsibilities as a valuable investment to create business competitive advantages and sustainability.Research limitations/implicationsFirst, this research only uses the PROPER participants as the research sample. Second, by nature, MA measurement errors might still exist because it is hard to determine the MA with qualitative factors. Third, this research does not split the environmental responsibilities into a wider spectrum, such as environmental–business, environmental–regulation or environmental–ethical spectrum.Originality/valueThis research provides new evidence that higher MA by green CEO increases ENV in Indonesia. This research also gives a contribution to fill the inconsistent previous findings of MA and ENV.

Managerial ability and analysts’ stock recommendations

This qualitative study examined the relationship between young deaf children's level of mathematics ability ("high" and "low," as defined by test score on the Test of Early Mathematics Ability-3) and opportunities available for the construction of early mathematics knowledge during a problem-solving task implemented by their parents. Findings indicate that the manner in which the mathematically based concepts (number/counting, quantity, time/sequence, and categorization) were incorporated into the activity was more meaningful for children who demonstrated high levels of mathematical ability. In addition, children who demonstrated high levels of mathematical ability experienced a more purposeful use of mediation during activity implementation; however, overall use of mediated learning experience was limited for children from both ability groups.

BackgroundMonitoring and anticipating population well-being, health, and functional capacity is essential for the development of social insurance benefits and rehabilitation services. We investigated the self-reported work ability of vulnerable client groups, particularly recipients of sickness benefits by Social Insurance Institute of Finland (Kela). The aim was to study self-reported work ability among sickness benefit recipients by major disease groups.MethodsData was collected as part of the Finnish Institute for Health and Welfare's Terve Suomi (Healthy Finland) study during 2022-23. The research data (N = 14 445 persons) was supplemented with national registry data, including records of sickness allowance 1987-2022 from Kela. Register-based data on sickness allowance by ICD-10 groups F (mental and behavioral disorders) and M (musculoskeletal and connective tissue diseases), based on year 2022, was utilized. Quantitative methods included cross-tabulation and logistic regression analyses.ResultsReceiving sickness allowance and number of disability days on sickness allowance were statistically significantly associated with perceived work inability. Most of the persons with sickness allowance due to mental or musculoskeletal diseases reported complete (45-46%) or partial (41-43%) work ability. Only 11-15% reported total inability to work. No differences were found in self-reported workability after taking into account 10-year age-group, ICD-10 diagnosis group (F or M) or gender.ConclusionsThe study highlights that sickness allowance recipients report high level of work ability, in spite of their background illness. These findings underscore the importance of targeted support measures and rehabilitation services, particularly for individuals with long-term sickness absences.Key messages• Sickness allowance recipients report high level of work ability, in spite of their background illness.• Targeted support measures and rehabilitation services for individuals with long-term sickness absences are needed.

The new prudential regulation framework, established by the European Central Bank (ECB) after the financial crisis encompasses supervisory procedures to measure and monitor bank business models, capital requirements, governance arrangements and liquidity risk. However, research on financial stability has revealed that, during financial crises, it would have been essential to monitor the vulnerability of banks by also assessing the value of their intangible assets. We contribute to the extant literature by examining the impact of a specific intangible asset—namely, managerial ability—on bank risk-taking. Given the interest of the regulatory authority in monitoring financial stability, we quantify management ability and document its double effects on bank risk-taking: the indirect effect through franchise value and its direct effect. We examine a sample of listed banks from 15 EU countries over the period 1997–2016. We find that higher managerial ability is associated with higher franchise value, contributing to a decrease in bank risk-taking (indirect effect), particularly for small banks and during financial crisis. Moreover, managerial ability reduces bank risk-taking through its direct effect. Our evidence suggests that managerial ability could be considered a measure (easily estimated) for regulating the disciplinary role of franchise value and, used in combination with current regulatory measures, could lead to supervisors achieving more effective management oversight.

Purpose This study examines the moderating effect of XBRL mandatory adoption on the association between managerial ability and corporate tax outcomes.Design/methodology/approach This study used a quantitative method with panel data regression models using a sample of listed firms on the Indonesia Stock Exchange from 2010 to 2019.Findings The regression results indicate that XBRL adoption moderates the relationship between managerial ability on tax avoidance and tax risk. Firms with higher managerial ability have relatively greater tax avoidance practices and lower tax risk following XBRL adoption. In this study, the authors document unfavorable and unexpected consequences of XBRL in an emerging country.Research limitations/implications Results are from a sample of firms from one emerging country.Practical implications It becomes important and necessary to develop more and better taxonomies with standardized extensions related to taxes information in the XBRL financial reporting to support the tax administrator’s performance in assessing firms’ tax avoidance and tax risk. The authors underscore the importance of improving taxes tags, including tags from financial statements and the disclosure section. This study may also inform policymakers in other countries that more adequate tax tags are needed to leverage benefit from XBRL adoption in monitoring and assessing corporate tax avoidance and tax risk.Originality/value This study is among the first to test an explanation for the moderating role of XBRL adoption on the association between managerial ability and corporate tax avoidance and tax risk.

This study aimed to identify the level of achievement of Malaysian students in Arabic Morphology material on three areas, previous study period, gender, and student education specialization. This research was a field research conducted on Malaysian students studying Arabic, at the International Islamic University Matriculation Center (IIUMC) in Kuala Lumpur-Malaysia. This study concluded that previous study periods, gender, and education specialization had an important role in this identification that became a reference for the improvement of Arabic Morphology learning curriculum. Students who were first learning Arabic in IIUMC had a high success rate only in matching letters (Anita) with pronouns and fi'il al-madi Shahih, and Mahmuz, and pronouns fi'il al-mahi al-Mithal. As for those who have studied Arabic for 5 years, 6 years, and 7 years have a high level of ability also in matching letters (Anita) with the pronouns and fi'il al-madi al-ajwaf. The level of ability of male students was lower than female students in all aspects without exception in matching letters (Anita) with pronouns and verbs that begin with the letter Ta’. As for students specializing in Arabic, Sharia, and Humanities, Reveal Knowledge and the Qur'an, and Arabic had different levels of success in accordance with their specialization, such as students with Arabic specialization had a high level of success in all the discussions that had been mentioned, however, for students with other specialties not. From the findings, there are several suggestions, namely communicative approach, gradualism, adoption of the most frequent morphological positions, introduction of grammar through meaning, reconciliation of teaching methods, designing Morphology materials, and exchanging cognitive programs for teachers and students.

Although inventor CEOs drive firm innovation, widely recognized CEO abilities—general ability or managerial ability—could be central to leveraging CEOs’ invention abilities to drive firm innovation. Using CEO copatentors’ invention ability (defined as CEO patent coauthors’ average number of forward citations over the average number of patents) as an instrument for inventor CEOs, we study the value of CEOs’ general ability and managerial ability in enhancing the influence of inventor CEOs on firm innovation. Firms led by inventor CEOs with higher general abilities spur greater firm innovation. Surprisingly, however, firms led by inventor CEOs with a higher level of managerial ability realized lower firm innovation. Inventor CEOs with greater general abilities also translate firm innovation into better product-market outcomes and spur more firm innovation under better corporate governance. Our findings have implications for the influence of an inventor CEO on firm innovation outcomes.

Demerjian et al. (2012) provide theoretically and empirically rigorous measurement of managerial ability based on data envelopment analysis. We discuss that the method can provide a consistent estimator and suggest best practices for empirical researchers. The three-stage approach of conducting inference with managerial ability begins with the first-stage estimation of firm-efficiency with inputs and outputs. The second stage removes the impacts of contextual variables on the firm-efficiency to construct managerial ability. The third stage uses the measure as a dependent or an independent variable. We discuss why data envelopment analysis that incorporates production theory and allows multiple inputs and outputs is more appropriate than other methods to measure managerial ability. We then discuss specific choices that researchers need to make in three stages: returns to scale, the number of inputs and outputs, industry-specific inputs and outputs, outlier detection, choice of estimation sample, adjustments to yield a valid measure of managerial ability, choice of contextual variables, the functional form of the second-stage regression, advantage of residual approach, and consideration for the inference with managerial ability as a dependent and an independent variable. Our suggestions allow researchers to apply the rigorous approach of Demerjian et al. (2012) in many contexts yet to be explored.

Are voluntary internal control weakness disclosures in initial public offerings associated with managerial ability and subsequent financial reporting quality?

Effective decision-making relies on access to timely and accurate information, which is widely regarded as a valuable asset in the capital market. Accounting information is no exception, and it is critical for managers to provide such information promptly to advance their firms' economic activities. This study investigates the relationship between managers' ability and the timeliness of financial reporting, testing three research hypotheses through linear regression analysis. The statistical population comprises 115 firms listed on the Tehran Stock Exchange between 2012 and 2021, with 1150 firm-year observations. The delay in the auditor's report serves as a proxy for financial reporting timeliness. Managers' abilities are measured using Demerjian et al.'s model [1]. The findings reveal a significant, positive relationship between managerial ability and the timeliness of financial reporting, indicating that higher managerial ability is associated with lower financial reporting delay. Additionally, the results suggest that the relationship between managerial ability and financial reporting timeliness is moderated by the size of the auditing firm and the firm itself.