The Impact of Managerial Ability and Financial Constraints on Investment Efficiency During the COVID－19 Pandemic : Focusing on the Healthcare Industry

[Purpose]This study aims to analyze whether strategic decision－making in corporate investment can be positively influenced by managerial ability, even under financial constraints, as investments in the healthcare industry increased during the COVID－19 pandemic. Such investments were observed in areas like vaccine development, expansion of production facilities, the spread of digital healthcare, and governmental policy support. [Methodology]During the COVID－19 pandemic, investments and support for the healthcare industry were continuously provided at the national level to overcome the pandemic. Considering that the healthcare industry might be a sector where strategic investment decisions by managers are effective even during a pandemic, this study analyzed how investment efficiency changes under financial constraints depending on managerial ability. [Findings]The analysis showed that companies with high managerial ability tend to improve investment efficiency even under financial constraints. Moreover, firms facing high financial constraints were more likely to experience a decrease in investment efficiency during the pandemic. However, competent managers were found to mitigate these constraints and seize opportunities to enhance investment efficiency. [Implications]This study emphasizes that managerial ability plays a crucial role in corporate investment decisions during crises. It empirically demonstrates that managerial ability serves as a factor enabling efficient investment despite financial constraints. Additionally, it highlights the critical role of managerial ability in maintaining or improving investment efficiency during crises like the pandemic, particularly underscoring its importance in specific industries such as healthcare.