Does manager ability influence the classification of lease arrangements?
Marcus Brooks et al.
Purpose: The purpose of this paper is to examine the influence of manager ability on a firm’s choice of lease classification and the decision to capitalize vs lease firm-specific assets. Design/methodology/approach: The authors use regression analysis to examine the association between manager ability, lease classification and asset specificity. Findings: Using 31,110 firm-year observations from 1998 to 2013, the authors find a significant positive relationship between manager ability and the de