Does political risk affect managerial ability?

Purpose This study aims to examine the relation between firm-level political risk and managerial ability. Design/methodology/approach This study uses regression analysis to explore firm-level political risk’s influence on managerial ability. Findings The findings exhibit a significant and positive relationship between firm-level political risk and managerial ability, suggesting that firms facing increased political risk demonstrate stronger managerial ability. Originality/value This study extends the body of research exploring the impact of firm-level political risk on corporate behavior and outcomes.