Managerial Ability and Company Performance in Life Cycle Stages

The effects of promotion of managerial ability on a company's performance have been considered in the financial and accounting literature. A company's longer life and its more different stages of the life cycle pave the way for managers to promote the effectiveness of their special abilities to improve operational activities of companies. This study examines the effect of managerial ability on company's performance in the growth, maturity and decline periods of some firms listed in TSE in the years from 2006 to 2014. For this purpose, the relation between managerial ability and company's performance is examined as the first hypothesis. The first hypothesis test results demonstrate a positive effect of managerial ability promotion on improvement of a company performance in form of return on investment. In addition, the second hypothesis test shows that the significant positive correlation between managerial ability and company performance is observed only in the growth and maturity periods and there is no significant relationship for firms in decline stage.