Unveiling the role of managerial ability in driving productivity, efficiency, and technological change: Insights from the Asian banking sector

Abstract In today's competitive banking industry, the role of capable managers is crucial for the success of banks in facing various challenges and threats. The importance of measuring managerial ability has gained significant attention among researchers. In this study, we focus on assessing the managerial ability of 166 Asian banks from six different countries over the period of 2014–2020. From a rational point of view, productivity growth in banks can be directly related to effective management, as capable managers enhance the bank's productivity. Therefore, our study investigates the relationship between productivity change in banks and managerial ability. Furthermore, we examine the impact of managerial ability on the components of productivity change, specifically efficiency change and technological change. The findings of our study indicate a positive association between managerial ability and both productivity and efficiency change (EC). However, no significant association is observed between managerial ability and technological change.