The effect of managerial ability on workplace safety

• We find a positive association between managerial ability and workplace injuries. • The effect of managerial ability on workplace injuries is mitigated in firms led by female CEOs or CEOs reaching the retirement age. • The effect of managerial ability on workplace injuries is more pronounced in firms with higher sales growth or greater revenue volatility. • To enhance efficiency, higher-ability managers may allocate heavier workloads to employees, thereby increasing their risk of injuries. • It is important for firms to balance efficiency-oriented management practices and workplace safety. We examine the impact of managerial ability on workplace safety. We provide robust evidence that managerial ability is positively associated with workplace injuries. Cross-sectional analyses reveal that this effect is attenuated in firms led by female CEOs or CEOs reaching the retirement age but is more pronounced in firms with higher sales growth or greater revenue volatility. Additional tests suggest that high-ability managers are more likely to increase employee workloads which may provide a potential explanation for the underlying mechanism.