Top management team functional diversity and organizational innovation in China: The moderating effects of environment

2012 ◽  
Vol 34 (1) ◽  
pp. 110-120 ◽  
Author(s):  
Cuili Qian ◽  
Qing Cao ◽  
Riki Takeuchi
Keyword(s):  
Functional Diversity ◽  
Organizational Innovation ◽  
Top Management Team ◽  
Management Team ◽  
Top Management ◽  
Moderating Effects

Top Management Team Intrapersonal Functional Diversity and Tax Avoidance

2020 ◽  
Author(s):  
James M. Plecnik ◽  
Shan Wang
Keyword(s):  
High Risk ◽  
Functional Diversity ◽  
Work Experience ◽  
Top Management Team ◽  
Tax Avoidance ◽  
Management Team ◽  
Top Management ◽  
Tax Rates ◽  
Effective Tax Rates ◽  
Prior Literature

Top management team (TMT) members have been shown to influence tax avoidance; however, prior literature has not identified whether the intrapersonal diversity of TMT functional backgrounds leads to higher levels of tax avoidance. To study this relationship, we utilize TMT intrapersonal functional diversity, which captures the average heterogeneity of the TMT members' work experience. The skills associated with intrapersonal functional diversity may allow managers to better understand and communicate with various parties related to firm tax policies, thereby facilitating tax avoidance. Overall, we find that TMTs with higher levels of intrapersonal functional diversity achieve lower cash effective tax rates and that these TMTs do not rely on tax strategies that pose high risk.

scholarly journals Top Management Team Risk Taking Propensities and Firm Performance: Direct and Moderating Effects

1970 ◽  
Vol 19 (2) ◽  
pp. 95-114
Author(s):  
Matthew Gilley ◽  
Bruce Walters ◽  
Bradley Olson
Keyword(s):  
Firm Performance ◽  
Risk Taking ◽  
Top Management Team ◽  
Dynamic Environments ◽  
Positive Influence ◽  
Performance Outcomes ◽  
Management Team ◽  
Top Management ◽  
Moderating Effects ◽  
Measures Of Risk

We investigate the influence of top management team (TMT) risk takingpropensities on firm performance. Diverging from previous work on the risktaking-performance relationship, we rely on perceptual (rather than archival)measures of risk taking. In addition to financial performance, we examineother performance outcomes of risk taking, such as innovativeness andstakeholder satisfaction. Contrary to the findings of Bromiley (1991J andBowman (1980), we find that risk taking has a strong positive influence onfirm performance. In addition, the risk taking-performance relationship ismoderated by the dynamism of the firm's industry. More specifically, we findthat the benefits of TMT risk taking are reduced in more dynamic environments.

Preventing or encouraging illegal activities by construction firms: effects of top management team compensation and aspiration-performance discrepancies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ran Wang ◽  
Chia-Jung Lee ◽  
Shu-Chien Hsu ◽  
Jieh-Haur Chen
Keyword(s):  
Fixed Effects ◽  
Positive Impact ◽  
Top Management Team ◽  
Management Team ◽  
Economic Losses ◽  
Top Management ◽  
Moderating Effects ◽  
Content Type ◽  
Construction Firms ◽  
Illegal Activities

PurposeCorporate illegal activities may result in fatal injuries and economic losses and have been widely reported in the construction industry. This study is to investigate the relationship between top management team (TMT) compensation and corporate illegal activities with the moderating effects of aspiration–performance discrepancies.Design/methodology/approachUsing a multi-year sample of Chinese construction firms from 2011 to 2017, this paper employed a hierarchical logit regression model with fixed effects.FindingsThis study indicates that TMT compensation is positively related to the likelihood of corporate illegal activities. It also finds performance higher than aspirations would lower the probability of illegal activities while performance lower than aspirations also decreases the occurrence of illegal behaviors. Finally, the positive relationship between TMT compensation and illegal activities is strengthened by aspiration–performance discrepancies.Practical implicationsIt recommended the design of executive compensation may need to be reconsidered. Next, companies need to carefully monitor top management team, especially when performance is lower than the desired level. Finally, debt-to-equity ratio deserves more attention for Chinese construction firms in suppressing illegal activities.Originality/valueGiven the mixed effects of TMT compensation, this study confirms its positive impact on corporate illegal behaviors. Consistent with the behavioral theory of the firm, it unveils the direct and moderating effects of aspiration-performance discrepancies. The findings are beneficial for evaluating firms' performance and considering the prevention of corporate fraudulent activities.

scholarly journals Top Management Team Intrapersonal Functional Diversity and Adaptive Firm Performance: The Moderating Roles of the CEO–TMT Power Gap and Severity of Threat

2021 ◽  
Vol 12 ◽  
Author(s):  
Changlong Ma ◽  
Yuhui Ge ◽  
Jingwei Wang
Keyword(s):  
Firm Performance ◽  
Functional Diversity ◽  
Interaction Effect ◽  
Top Management Team ◽  
Management Team ◽  
Top Management ◽  
Regression Analyses ◽  
Contingency Model ◽  
Team Adaptation ◽  
Threat Rigidity

While usually argued to be improving firm performance, the effect of top management team (TMT) functional diversity on firm performance is mixed. Bridging the TMT diversity, team adaptation, and threat-rigidity literature, we present a contingency model in which the relationships between intrapersonal functional diversity (at both CEO and TMT levels) and adaptive firm performance depend on the CEO–TMT power gap and severity of threat. To test our hypotheses, 270 firms, which have been severely affected due to the COVID-19 pandemic, were selected from China's A-share listed companies. Multiple regression analyses have shown that a moderation of CEO intrapersonal functional diversity's effect on adaptive firm performance by the CEO–TMT power gap is moderated by the severity of threat. However, no significant main or interaction effect of TMT intrapersonal functional diversity was found. The findings of this study have implications for the recovery or improvement of firm performance in threat situations.

scholarly journals The Influence of Top Management Team on Chinese Firms’ FDI Ambidexterity

2018 ◽  
Vol 14 (3) ◽  
pp. 513-542 ◽  
Author(s):  
Yi Li ◽  
Lin Cui
Keyword(s):  
Functional Diversity ◽  
Top Management Team ◽  
External Environment ◽  
Manufacturing Firms ◽  
Management Team ◽  
Top Management ◽  
Chinese Firms ◽  
The Social ◽  
Positive Effect

ABSTRACTStrategic ambidexterity has been under researched in the context of Chinese outward foreign direct investment (FDI). An ambidextrous FDI, balancing between exploratory and exploitive activities, is strategically desirable but managerially challenging. We examine the role of top management team (TMT) functional diversity in influencing Chinese firms’ degree of FDI ambidexterity, and its boundary conditions in relation to the informal and formal institutional environments within which the TMT operates. Based on a panel of Chinese outward-investing manufacturing firms, our empirical analyses show that a marginal positive effect of TMT functional diversity on a firm's FDI ambidexterity is strengthened by the social faultline presence in the firm's TMT, but is weakened by the development of formal institutions in the firm's external environment.

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