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The relationship between supervision quality, CEO’s ability and authority with firm performance

Mahdi Salehi (Department of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, Iran)
Ameneh Bazrafshan (Department of Economics and Administrative Sciences, Imamreza International University of Mashhad, Mashhad, Iran)
Mahdieh Hosseinkamal (Department of Economics and Administrative Sciences, Imamreza International University of Mashhad, Mashhad, Iran)

Journal of Facilities Management

ISSN: 1472-5967

Article publication date: 4 January 2021

Issue publication date: 7 May 2021

133

Abstract

Purpose

This paper aims to investigate the relationship between a CEO's ability and authority with firm performance. The authors used a sample of 127 Iranian listed firms for over seven years, from 2011 to 2017.

Design/methodology/approach

The authors used data envelopment analysis (DEA) to evaluate managers' abilities, and the authors used business strategies to gauge authorities. Also, the methods of Fama–French and Herfindal–Hirschman were used for 889 firm-year observations.

Findings

The results show that managers' ability based on return on assets can affect firm performance, and skilled managers can improve performance.

Originality/value

In Iran, managers' abilities and other variables can impact it has been studied. Still, no study has been conducted on managers' strength and their level of authority with the presence of supervision on them.

Keywords

Citation

Salehi, M., Bazrafshan, A. and Hosseinkamal, M. (2021), "The relationship between supervision quality, CEO’s ability and authority with firm performance", Journal of Facilities Management, Vol. 19 No. 2, pp. 150-173. https://doi.org/10.1108/JFM-08-2020-0056

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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