Does top managers’ skills moderate the debt-stock returns relationship in Malaysia?
Traditional theorists recognize that stockholders benefit from top managers’ decisions; but, top managers’ skills are not explicitly analysed in their theoretical model. This article examines the moderating effects of top managers’ skills on the debt-stock return relationship. The two-step system ge...
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| Format: | Article |
| Language: | English |
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Universiti Malaysia Sarawak
2019
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| Online Access: | http://psasir.upm.edu.my/id/eprint/79438/ http://psasir.upm.edu.my/id/eprint/79438/1/Does%20top%20managers%E2%80%99%20skills%20moderate%20the%20debt-stock%20returns%20relationship%20in%20Malaysia.pdf |
| _version_ | 1848858678896099328 |
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| author | Matemilola, Bolaji Tunde Amin Noordin, Bany Ariffin Wan Ngah, Wan Azman Saini |
| author_facet | Matemilola, Bolaji Tunde Amin Noordin, Bany Ariffin Wan Ngah, Wan Azman Saini |
| author_sort | Matemilola, Bolaji Tunde |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Traditional theorists recognize that stockholders benefit from top managers’ decisions; but, top managers’ skills are not explicitly analysed in their theoretical model. This article examines the moderating effects of top managers’ skills on the debt-stock return relationship. The two-step system generalized method of moments results show top managers skills positively moderate the book debt and stock return relationship. Moreover, top managers’ skills have direct positive effect on stock returns. The results are robust using an alternative measure of debt, as top managers’ skills positively moderate the market debt and stock returns relationship. The findings suggest that top managers’ possessing strong skills maximize tax-shield benefits of debt and they increase stockholders’ returns. |
| first_indexed | 2025-11-15T12:17:16Z |
| format | Article |
| id | upm-79438 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T12:17:16Z |
| publishDate | 2019 |
| publisher | Universiti Malaysia Sarawak |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-794382021-04-07T11:38:59Z http://psasir.upm.edu.my/id/eprint/79438/ Does top managers’ skills moderate the debt-stock returns relationship in Malaysia? Matemilola, Bolaji Tunde Amin Noordin, Bany Ariffin Wan Ngah, Wan Azman Saini Traditional theorists recognize that stockholders benefit from top managers’ decisions; but, top managers’ skills are not explicitly analysed in their theoretical model. This article examines the moderating effects of top managers’ skills on the debt-stock return relationship. The two-step system generalized method of moments results show top managers skills positively moderate the book debt and stock return relationship. Moreover, top managers’ skills have direct positive effect on stock returns. The results are robust using an alternative measure of debt, as top managers’ skills positively moderate the market debt and stock returns relationship. The findings suggest that top managers’ possessing strong skills maximize tax-shield benefits of debt and they increase stockholders’ returns. Universiti Malaysia Sarawak 2019 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/79438/1/Does%20top%20managers%E2%80%99%20skills%20moderate%20the%20debt-stock%20returns%20relationship%20in%20Malaysia.pdf Matemilola, Bolaji Tunde and Amin Noordin, Bany Ariffin and Wan Ngah, Wan Azman Saini (2019) Does top managers’ skills moderate the debt-stock returns relationship in Malaysia? International Journal of Business and Society, 20 (3). pp. 1048-1061. ISSN 1511-6670 http://www.ijbs.unimas.my/index.php/content-abstract/current-issue/629-does-top-managers-skills-moderate-the-debt-stock-returns-relationship-in-malaysia |
| spellingShingle | Matemilola, Bolaji Tunde Amin Noordin, Bany Ariffin Wan Ngah, Wan Azman Saini Does top managers’ skills moderate the debt-stock returns relationship in Malaysia? |
| title | Does top managers’ skills moderate the debt-stock returns relationship in Malaysia? |
| title_full | Does top managers’ skills moderate the debt-stock returns relationship in Malaysia? |
| title_fullStr | Does top managers’ skills moderate the debt-stock returns relationship in Malaysia? |
| title_full_unstemmed | Does top managers’ skills moderate the debt-stock returns relationship in Malaysia? |
| title_short | Does top managers’ skills moderate the debt-stock returns relationship in Malaysia? |
| title_sort | does top managers’ skills moderate the debt-stock returns relationship in malaysia? |
| url | http://psasir.upm.edu.my/id/eprint/79438/ http://psasir.upm.edu.my/id/eprint/79438/ http://psasir.upm.edu.my/id/eprint/79438/1/Does%20top%20managers%E2%80%99%20skills%20moderate%20the%20debt-stock%20returns%20relationship%20in%20Malaysia.pdf |