The impact of managerial effectiveness on company performance in transition economies.
|Author:||Mgr. David Hofman|
|Year:||2006 - winter|
|Leaders:|| PhDr. Martin Netuka
|Work type:|| Finance and Banking
|Awards and prizes:|
|Abstract:||This study focuses on company performance determinants in transforming economies in general and on the relatively rarely discussed managerial abilities among them in particular. The study focuses Czech specifics at the end of the 1990’s.
The study builds upon an original dataset stemming from field research activities by a team lead by the author on behalf of Texas A&M University and Georgetown University in the course of 2002. The resulting sample includes 163 companies.
The author has focused on value added that the inclusion of managerial effectiveness may bring to the explanation of company performance uses the results of the field research to test the following hypotheses concerning the relationships between the occurrence of highly effective management teams and surrounding conditions:
Hypothesis 1: Management skills, experience and practices do contribute significantly to company performance in transition economies.
Hypothesis 2: Firm specific factors such as ownership type and structure, international linkages, managerial turnover and others have effect on the presence of critical managerial skills among the top management team.
Hypothesis 3: The characteristics and traits of the top management team as measured by proxy indicators influence the direction and extent of restructuring efforts in the company as well as their effect on company performance.
Results verify all the hypotheses.