Does managerial ability matter in corporate sustainability-related dynamics? An empirical investigation

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This study aims to assess the intricate interplays between managerial ability, corporate social responsibility (CSR), and firm value, focusing on 3,498 company-year observations sourced from the RANKINS CSR RATINGS and China Stock Market & Accounting Research (CSMAR) databases representing China’s Shanghai and Shenzhen A-share listed companies from 2009 to 2018. Employing a rigorous sample selection process and utilizing data from reliable databases, the research employs a comprehensive methodology to explore the intricate corporate sustainability-related dynamics influencing organizational success and societal impact.
The findings reveal a compelling negative correlation between managerial ability and CSR performance, corroborating previous research and suggesting potential challenges in reconciling managerial competence with social responsibility priorities. Furthermore, this paper establishes a negative correlation between CSR and firm value, with managerial ability influencing the magnitude of this impact, underscoring the significance of managerial skills in moderating the relationship between CSR initiatives and overall corporate performance. Moreover, the study uncovers a robust positive correlation between managerial ability and firm value, emphasizing the pivotal role of adept leadership in achieving higher corporate valuation.
It provides valuable insights for practitioners, policymakers, and scholars, creating a conducive environment for well-informed decision-making. In the ever-changing corporate landscape, a deep understanding of these interconnections is essential to nurture business practices that are both sustainable and value-oriented.

Acknowledgment
This paper is co-funded by the European Union through the European Education and Culture Executive Agency (EACEA) within the project “Embracing EU corporate social responsibility: challenges and opportunities of business-society bonds transformation in Ukraine” – 101094100 — EECORE – ERASMUS-JMO-2022-HEI-TCH-RSCH-UA-IBA/ERASMUS-JMO-2022-HEI-TCHRSCH https://eecore.snau.edu.ua/
Oleh PASKO expresses sincere gratitude for the support from the Kirkland Research Program, generously provided by the Leaders of Change Foundation established by the Polish-American Freedom Foundation.

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    • Table 1. Sample selection procedure
    • Table 2. Variable definition
    • Table 3. Descriptive statistics
    • Table 4. Regression analysis І
    • Table 5. Regression analysis ІІ
    • Table 6. Regression analysis ІІІ
    • Table A1. Correlation matrix
    • Table A2. Regression analysis ІV
    • Table A3. Regression analysis V
    • Table A4. Robustness test І
    • Table A5. Robustness test ІІ. Lead-lag approach
    • Conceptualization
      Oleh Pasko, Edward Markwei Martey, Tetyana Kuts
    • Funding acquisition
      Oleh Pasko
    • Investigation
      Oleh Pasko, Li Zhang, Edward Markwei Martey, Tetyana Kuts, Linus Baka Joshua
    • Methodology
      Oleh Pasko, Edward Markwei Martey
    • Project administration
      Oleh Pasko, Li Zhang
    • Resources
      Oleh Pasko
    • Supervision
      Oleh Pasko
    • Visualization
      Oleh Pasko, Li Zhang, Edward Markwei Martey, Linus Baka Joshua
    • Writing – original draft
      Oleh Pasko, Li Zhang, Edward Markwei Martey, Tetyana Kuts, Linus Baka Joshua
    • Writing – review & editing
      Oleh Pasko
    • Data curation
      Li Zhang, Edward Markwei Martey
    • Formal Analysis
      Li Zhang, Tetyana Kuts, Linus Baka Joshua
    • Validation
      Edward Markwei Martey, Tetyana Kuts, Linus Baka Joshua
    • Software
      Tetyana Kuts, Linus Baka Joshua