Strategic Role of Managerial Ability in Enhancing Corporate Performance: A Multi-Model Empirical Assessment of European Insurance Market

This study investigates the impact of managerial ability on firm performance across financial and non-financial sectors using panel data and multiple regression models. We use comprehensive estimation framework, including fixed effects, random effects, and robustness checks. The research finds that managerial ability significantly and positively influences key firm performance indicators such as Return on Assets (ROA), Return on Equity (ROE), and Tobin’s Q. The study further explores how managerial ability interacts with organizational and environmental factors, including digital capabilities and macroeconomic uncertainty. Results consistently support the view that managerial ability is a strategic resource, reinforcing the resource-based view (RBV) of the firm. The findings have important implications for executive recruitment, corporate governance, and strategic planning, particularly in dynamic and technologically evolving environments.