Managerial Ability,Financing Constraints And Enterprise Performance

For an enterprise,the level of management competence determines its business objectives and investment decisions,and plays an indispensable role in the development process of the enterprise.Management plays a key role in transforming internal and external resources into productive capacity and efficiency.As the actual executors of business activities,they not only have the authority to allocate resources and make management decisions,but also influence the investment decisions and strategic direction of the company.In terms of access to resources,management with strong capabilities are in a better position to optimize the allocation of resources and make flexible use of available resources to gain room for survival and enhance the competitiveness of the enterprise,thus effectively improving its performance.Due to the widespread problem of "difficult" and "expensive" financing in China,enterprises usually rely on external financing to solve the problem of insufficient funds.However,agency problems and information asymmetry can cause management and stakeholders to pursue different goals,leading to the possibility of adverse selection and moral hazard by management,which not only increases the burden on enterprises and hinders their survival and development,but also further reduces the efficiency of capital market allocation and hinders the sustainable and healthy development of the economic market.Therefore,in the new economic market,by studying the influence mechanism of management capability in the process of enhancing corporate performance,the potential capability of management can be fully stimulated to continuously break through the bottlenecks encountered in the process of business management and achieve steady growth in business performance,so as to maximize the value of the enterprise itself and promote the high-quality development of China’s economy.After conducting a literature review and theoretical analysis,this paper selects the data of A-share listed companies in Shanghai and Shenzhen from 2014 to 2021 as the research sample,aiming to examine the relationship between management capability and corporate performance,and to explore the path of influence of management capability on corporate performance from the perspectives of financing constraints and executive shareholding,while further analyzing the differences in this path of influence under different corporate size,industry competition and corporate life cycle.The results of the study show that:(1)management capability has a significant positive impact on corporate performance.(2)Management capability can alleviate the financing constraints faced by firms.(3)Financing constraints play a part in mediating the effect of management capability on firm performance,and firms can improve their performance by improving management capability to mitigate the severity of financing constraints.(4)Executive shareholding has a direct moderating effect and a second half path moderating effect on the mediating effect of financing constraints between management capability and corporate performance,mitigating the negative impact of financing constraints on corporate performance,and there is a substitution relationship with management capability,they will stand as shareholders to make decisions in the overall interest of the enterprise,thus broadening the financing channels of the enterprise,alleviating the financing constraints faced by the enterprise,and thus improving corporate performance.(5)Further research finds that the mediating effect of financing constraints and the moderating effect of executive shareholding on the mediating effect are more pronounced in firms that are large,have high industry competition,and are in the growth and maturity stages.The above study enriches the mechanism of the influence of management capability on firm performance and complements the research on executive shareholding,which has certain implications for alleviating the financing constraint problem.