The effect of managerial ability on workplace safety
Year: 2025
Type: article
Abstract: • We find a positive association between managerial ability and workplace injuries. • The effect of managerial ability on workplace injuries is mitigated in firms led by female CEOs or CEOs reaching the retirement age. • The effect of managerial ability on workplace injuries is more pronounced in firms with higher sales growth or greater revenue volatility. • To enhance efficiency, higher-ability managers may allocate heavier workloads to employees, thereby increasing their risk of injuries. • It is important for firms to balance efficiency-oriented management practices and workplace safety. We examine the impact of managerial ability on workplace safety. We provide robust evidence that managerial ability is positively associated with workplace injuries. Cross-sectional analyses reveal that this effect is attenuated in firms led by female CEOs or CEOs reaching the retirement age but is more pronounced in firms with higher sales growth or greater revenue volatility. Additional tests suggest that high-ability managers are more likely to increase employee workloads which may provide a potential explanation for the underlying mechanism.
Source: Finance research letters
Authors: Jingru Gao, Yunhe Dong
Institutions: City University of Macau, The University of Melbourne
Language: English
Subfield: Radiological and Ultrasound Technology
Field: Health Professions
Domain: Health Sciences
Open Access status: hybrid
Estimated APC paid: $3,730
OpenAlex ID: W4413099248