Contents
Does Managerial Ability Matter in Private Firms? Evidence from Korea / Lee-Seok Hwang ; Taejin Jung ; Seunghee Yang ; Kyunghwa Yu 1
Abstract 1
1. Introduction 1
2. Literature Review and Hypothesis Development 4
2.1. Literature Review 4
2.2. Hypothesis Development 6
3. Research Design 8
3.1. Data 8
3.2. Models 8
4. Results 11
4.1. Descriptive Statistics 11
4.2. Firm Performance 11
4.3. Investment Behavior 15
4.4. Spurious Relation Between Managerial Ability and Investment 18
4.5. The Likelihood of Going Public and Post-IPO Performance 19
4.6. Possible Explanation : Earnings Quality 22
5. Additional Analyses and Robustness Checks 26
5.1. Earnings Persistence 26
5.2. R&D Innovation Ability 26
5.3. Comparison Between Private and Public Firms 26
6. Summary and Conclusion 27
References 31
Appendix Variable Definitions 34