Investigating the relationship between managerial ability and performance volatility with an emphasis on financial turmoil

In an era when companies face many challenges to survive in competitive markets, financial health and identifying the factors that lead to financial crises are of great importance. There are obstacles for the continuation of the activities of the companies that lead to the failure of the companies. One of the characteristics of failure and failure of companies is financial turmoil. Therefore, the purpose of this research is to investigate the relationship between managerial ability and performance volatility with an emphasis on financial turmoil. The statistical population of the research companies admitted to the Tehran Stock Exchange and the studied sample includes 140 admitted companies during the years 2016 to 2016. The research method is descriptive and causal-correlation in terms of the relationship between the variables, and it is practical in terms of the goal. The regression method and panel data as well as the fixed effects model were used to process and test the hypotheses. The results obtained from the analysis of the hypothesis showed that financial turmoil has a negative and significant effect on the relationship between managerial ability and performance volatility. According to the results of the research, it is suggested to the board of directors and company owners to consider the transparency of the company as an influential factor in the investors' attitude towards the ability and performance of the company's management; Therefore, they should be careful in choosing their managers and choose a capable and expert person; Because capable managers increase the efficiency of the company and show the result of their desired performance by increasing the transparency of the company.