<![CDATA[Purpose: This study examines the direct impact of managerial characteristics, particularly managerial experience, on firm performance from a behavioral accounting perspective. Additionally, it investigates how internal organizational mechanisms, namely employee training investments and digital technology adoption, mitigate managerial rigidity to optimize corporate financial results.Research Methodology: Utilizing a quantitative behavioral accounting framework, the empirical analysis evaluates microdata comprising 4,946 firm-level observations from emerging economies in Europe. Ordinary Least Squares (OLS) regression and Generalized Structural Equation Modeling (GSEM) mediation analysis with robust standard errors were executed using Stata software.Results: Managerial experience and female managerial presence negatively affect firm performance, whereas employee training and digital technology adoption have positive effects. Digital adoption also significantly mediates the effect of employee training on firm performance.Conclusions: By Integrating Upper Echelons Theory and the Resource-Based View, the findings demonstrate that extensive executive experience can yield an experience trap due to cognitive rigidity and inertia. Combining digital tools with workforce training is a valuable internal resource that counters leadership limitations in dynamic environments.Limitations: The cross-sectional design constrains the ability to observe long-term temporal dynamics, multi-year adaptation lags, or path-dependent trajectories of human capital investments and digital transformation.Contributions: Corporate executives and HR policymakers should align employee training directly with digital workflows rather than executing standalone investments while implementing executive upskilling to overcome cognitive inertia.]]>
