Volume 7, No. 2, August 2008

 

Firm Management Competence: Does It Matter?

Konstantinos S. Skandalis
Department of Economics, University of Peloponnese, Greece
Panagiotis G. Liargovas

Department of Economics, University of Peloponnese, Greece

Anna A. Merika
Department of Economics, Deree College, Greece
Abstract

This study explores the influence of financial leverage and of management competence on firm performance using a sample of 102 listed firms in the Athens Stock Exchange. It is found that leverage contributes significantly to sales growth, stock returns, and profitability due to management competence.

Key words: management competence; leverage; Athens Stock Exchange
JEL classification: C33; L25; M12; M21

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