Analysing The Impact of Managerial Ability and Stock Price Crash Risk: The Mediating Role of Financial Performance In The Indonesian Capital Market

Analysing The Impact of Managerial Ability and Stock Price Crash Risk: The Mediating Role of Financial Performance In The Indonesian Capital Market | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Analysing The Impact of Managerial Ability and Stock Price Crash Risk: The Mediating Role of Financial Performance In The Indonesian Capital Market Masyhuri Hamidi, Fajri Adrianto, Nanda Nanda, Eko Dwi Putra, Amer Azlan Abdul Jamal This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-6170029/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract Managerial ability is a key determinant of firm performance. The Indonesian capital market is an emerging market that offers investors significant opportunities but is accompanied by substantial risks. Our study utilises a sample of firms listed on the Indonesia Stock Exchange from 2013 to 2023, specifically those included in the LQ45 index, comprising a final dataset of 810 firm-year observations. This study employs multiple linear regression analysis conducted using Stata software. We examine the relationship between managerial ability and stock price crash risk, with financial performance as a mediating variable. Some of our findings indicate varied outcomes when considering the characteristics of firms in Indonesia. One reveals that the total effect of the relationship between managerial ability and stock price crash risk, mediated by financial performance, is more potent in non-family firms than family firms. These findings are expected to provide investors with a deeper understanding of the characteristics of the Indonesian capital market. While the market offers considerable opportunities, it also presents potential risks for investors. Manager ability stock price crash risk financial performance capital market emerging market Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-6170029","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":428364732,"identity":"7e817212-b5a6-4063-9a32-63554e8bad53","order_by":0,"name":"Masyhuri Hamidi","email":"data:image/png;base64,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","orcid":"","institution":"Andalas University","correspondingAuthor":true,"prefix":"","firstName":"Masyhuri","middleName":"","lastName":"Hamidi","suffix":""},{"id":428364733,"identity":"660629b7-a214-46d5-892d-74d8f380d100","order_by":1,"name":"Fajri Adrianto","email":"","orcid":"","institution":"Andalas University","correspondingAuthor":false,"prefix":"","firstName":"Fajri","middleName":"","lastName":"Adrianto","suffix":""},{"id":428364734,"identity":"cce57c68-99cd-409e-bac5-291d18640e7c","order_by":2,"name":"Nanda Nanda","email":"","orcid":"","institution":"Universitas Baiturrahmah","correspondingAuthor":false,"prefix":"","firstName":"Nanda","middleName":"","lastName":"Nanda","suffix":""},{"id":428364735,"identity":"d4f9a561-e9e3-41f2-b7ab-c46dc1acbc9f","order_by":3,"name":"Eko Dwi Putra","email":"","orcid":"","institution":"","correspondingAuthor":false,"prefix":"","firstName":"Eko","middleName":"Dwi","lastName":"Putra","suffix":""},{"id":428364736,"identity":"da48783e-a060-457a-857f-6d4554956ee7","order_by":4,"name":"Amer Azlan Abdul Jamal","email":"","orcid":"","institution":"Universiti of Malaysia Sabah","correspondingAuthor":false,"prefix":"","firstName":"Amer","middleName":"Azlan Abdul","lastName":"Jamal","suffix":""}],"badges":[],"createdAt":"2025-03-06 11:23:28","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-6170029/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-6170029/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":78493268,"identity":"fea6fb34-7350-441f-b1d2-0398696733ed","added_by":"auto","created_at":"2025-03-14 03:16:34","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":333239,"visible":true,"origin":"","legend":"","description":"","filename":"AnonymFinancialMarketHamidi.pdf","url":"https://assets-eu.researchsquare.com/files/rs-6170029/v1_covered_983d6fc5-cf9f-4ef9-a0b6-537f24a7bdfd.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Analysing The Impact of Managerial Ability and Stock Price Crash Risk: The Mediating Role of Financial Performance In The Indonesian Capital Market","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":true,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Manager ability, stock price crash risk, financial performance, capital market, emerging market","lastPublishedDoi":"10.21203/rs.3.rs-6170029/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-6170029/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eManagerial ability is a key determinant of firm performance. 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