International Journal of Business and Economics 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.

Keywords：management competence, leverage, Athens Stock Exchange.

JEL Classifications： C33, L25, M12, M21.

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