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Managerial talent and managerial practices: Are they complements? by Audinga Baltrunaite; Giulia Bovini; Sauro Mocetti is a Business, Management and Accounting article available to read on EtoBox.

What is Managerial talent and managerial practices: Are they complements? about?

We examine the role of managerial talent and its interaction with managerial practices in determining firm performance. We build a matched firm-director panel dataset for the universe of limited liability companies in Italy, tracking directors across different firms over time. We define managerial talent as the individual contribution to the variation of the firms’ total factor productivity, estimated using a two-way fixed effects model. Combining the data with survey information on a representative sample of firms, we then document that our measure of talent correlates with ex-ante and ex-post indicators of ability, i.e. managers’ educational attainment and their forecast precision with respect to the firm’s future performance. Most important, we leverage information on the adoption of managerial practices within the firm to examine potential synergies between managerial talent and structured managerial practices, thus bridging two separate strands of the literature. While talent and structured practices are positively associated with firm productivity on their own, there is evidence of complementarities between the two. These findings hold both in a cross-sectional setting and in

Who reads Managerial talent and managerial practices: Are they complements??

Author

Audinga Baltrunaite; Giulia Bovini; Sauro Mocetti

Publisher

Elsevier BV

Published

2023

Language

EN

Field

Business, Management and Accounting (Social Sciences)