University of Westminster

WESTMINSTER INTERNATIONAL UNIVERSITY IN TASHKENT 

4 

001023, 00953, 000933, 001012 

estimation was used for the analysis. It was found out that there was positive and significant relationship 

between capital expenditure and sales. (Eisner, 1964) 

 

H

0

: Expenditure on fixed assets have positive influence on firm`s sales. 

 

Manager’s years of experience 

Escriba-Esteve et al. (2009) state that teams who have the presence of experienced managers benefit from a 

wider conceptualism of problems. According to their findings, experienced managers use variety of information 

and capable to manage new business opportunities. Wafa Ghardallou et al. (2020) indicate that CEO’s higher 

years of experience positively correlated with firm performance. 

It is natural that manager with years of experience have positive impact on firms’ performance. However, when 

it comes to certain sectors (e.g., mutual fund performance), there can be trends showing that experience is not 

always have the considerable impact on firm’s performance. Even though many investment advisors suggest it 

is better to exclude mutual fund managers with less than five years of experience. According to Bruce A. Costa 

et al. there is no reason to recruit mutual fund managers based only on experience.  Their study indicate that 

actively managed mutual funds can add significant value, but selection based only on experience does not really 

enhances the investor’s odds in picking a superior mutual fund. Furthermore, according to Hamori, M., & 

Koyuncu, B. (2014) CEOs having previous experience in the related field show considerably lower post-

succession performance than their peers without prior CEO experience. 

However, most researches based on this show that manager’s experience generally increases firm’s value. The 

following hypothesis is to be tested:  

H

0

: Manager’s years of experience have positive impact on firm’s performance.