An Empirical Study on the Effects of Managerial Competence on Firm Profitability

Profits are generated by managing assets and using them wisely to create revenues that exceed costs. This study aimed analyse the effects of managerial competence on firm profitability listed in Dar es Salaam stock exchange (DSE). The quantitative research design was used collect, interpret data this while Panel Regression Model selected influence Managerial firms. POLS technique check robustness Diagnostic tests were meet criteria regression analysis. analysis indicate had a significant effect profitability. Raising has potential significantly increase business profitability, as managers play key role an organization's overall functioning. researchers suggested shareholders should thoroughly managers' competencies credentials before allocating duties since hiring competent management team is likely have beneficial impact firm's Shareholders strive reduce risk choosing who lack requisite abilities maximize performing due diligence selection process.