Performance effects of top management team gender diversity during the merger and acquisition process

2015 ◽  
Vol 53 (1) ◽  
pp. 57-74 ◽  
Author(s):  
Heather R. Parola ◽  
Kimberly M. Ellis ◽  
Peggy Golden
Keyword(s):  
Top Management Team ◽  
Gender Diversity ◽  
Merger And Acquisition ◽  
Management Team ◽  
Top Management ◽  
Negative Effects ◽  
Content Type ◽  
Double Edge ◽  
Performance Effects ◽  
Double Edge Sword

Purpose – The purpose of this paper is to uncover the performance effects of top management team (TMT) gender diversity in the merger and acquisition (M&A) process. To do so, an integration of the upper echelons perspective and the M&A process literature is offered to consider the “double-edge sword” of gender diversity on both pre- and post-integration performance. Additionally, the boundary effects of acquirer experience on the TMT gender diversity-performance relationship is examined. Design/methodology/approach – The hypotheses are tested in a sample of 310 acquisitions by Fortune 1,000 companies. Multiple regression analysis is utilized to test the effects on the two different performance variables. Findings – The findings reveal that TMT gender diversity is beneficial to pre-integration performance, but hinders post-integration performance. Additionally, the findings provide evidence that acquirer experience can overcome the negative effects of gender diversity in post-integration performance. Originality/value – This study contributes to a better understanding of the double-edge sword of TMT gender diversity by providing evidence that performance implications depend on the performance variable of interest. Specifically in the M&A context, gender diversity has differing effects on pre- and post-integration performance.

Top management team gender diversity and productivity: the role of board gender diversity

2019 ◽  
Vol 38 (1) ◽  
pp. 71-86 ◽  
Author(s):  
Nalongded Luanglath ◽  
Muhammad Ali ◽  
Kavoos Mohannak
Keyword(s):  
Top Management Team ◽  
Gender Diversity ◽  
Moderating Effect ◽  
Management Team ◽  
Top Management ◽  
Employee Productivity ◽  
Content Type ◽  
Upper Echelons Theory ◽  
Board Gender Diversity ◽  
Positive Effect

Purpose Based on the significance of context, the purpose of this paper is to investigate a positive top management team (TMT) gender diversity–productivity relationship derived from the upper echelons theory, and a moderating effect of board gender diversity on the TMT gender diversity–productivity relationship derived from the relational framework. Design/methodology/approach The hypotheses were tested in 172 organisations listed on the Australian Securities Exchange. This research uses archival data from multiple secondary sources, with a one-year time lag between the predictor and outcome. Findings The findings indicate a positive effect of TMT gender diversity on employee productivity and a strong positive TMT gender diversity–employee productivity relationship in organisations with a low level of board gender diversity. Originality/value This study provides pioneering evidence for a positive effect of TMT gender diversity on employee productivity and for a moderating effect of board gender diversity.

Examining the pull, the push, and their simultaneous effects on managerial turnover

2020 ◽  
Vol 58 (12) ◽  
pp. 2639-2654 ◽  
Author(s):  
Yoonhee Choi ◽  
Namgyoo K. Park
Keyword(s):  
Top Management Team ◽  
The United States ◽  
Management Team ◽  
Top Management ◽  
Content Type ◽  
Economic Mechanism ◽  
Positive Effects ◽  
Psychological Mechanisms ◽  
Managerial Turnover ◽  
Psychological Mechanism

PurposeThis paper aims to examine the economic and psychological mechanisms in turnover at the managerial level. The paper investigates how (1) the ease of moving posed by alternative jobs (i.e. the economic mechanism) and (2) the desire to move due to low job satisfaction (i.e. the psychological mechanism) simultaneously influence top management team (TMT) turnover and these managers' subsequent job position and pay.Design/methodology/approachUsing 25 years of panel data on more than 2,000 top managers in the United States, the paper utilizes fixed-effects logistic regressions and the ordinary least squares model to test the hypotheses.FindingsThe authors find that CEO awards (an economic mechanism) and low compensation (a psychological mechanism) independently have positive effects on turnover. Turnover due to the economic mechanism leads to a higher position and pay, whereas turnover due to the psychological mechanism does not guarantee the same outcome. Further, when examining how pay dissatisfaction influences turnover simultaneously with CEO awards, the authors find that managers with the highest pay leave their firm, and not those with the lowest pay.Originality/valueThe paper employs the pull-and-push theory in the employee turnover literature and applies it to the top management team literature. By doing so, this paper contributes original insights to how economic and psychological mechanisms simultaneously affect managerial turnover and its subsequent outcomes.

Top management team heterogeneity, corporate social responsibility and firm risk: an emerging country perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Hassan Shakil ◽  
Nor Shaipah Abdul Wahab
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Top Management Team ◽  
Management Team ◽  
Top Management ◽  
Total Risk ◽  
Firm Risk ◽  
Content Type ◽  
Listed Firms ◽  
Corporate Social

Purpose This study aims to examine the effects of top management team (TMT) heterogeneity and corporate social responsibility (CSR) on the firm risk of Bursa Malaysia listed firms. Also, this study examines the moderating effect of CSR between TMT heterogeneity and firm risk. Design/methodology/approach This study uses panel regression models to test the hypotheses. The sample of this study is Bursa Malaysia non-financial listed firms from 2013 to 2017 with 3,055 observations. Findings This study finds significant effects of TMT age and tenure heterogeneities on total risk. Effects on idiosyncratic risk are evident only within age heterogeneity. Further, this study finds negative effects of CSR on total and idiosyncratic risks. CSR significantly moderates the relationship between total TMT heterogeneity and firm systematic risk. Practical implications This study reduces the literature gap by providing useful insights on the effects of CSR activities and TMT heterogeneity on firm risk. The findings can also provide hints to investors to assist them in assessing firm risk based on TMT heterogeneity and firms’ CSR. This study can also benefit shareholders in their attempts to mitigate the risk of their portfolio by investing in firms that are socially responsible as firms with high CSR suffer lower total and idiosyncratic risks. Originality/value Previous studies have emphasised on the influence of TMT characteristics and CSR on firm performance. However, studies that investigate the effects of TMT heterogeneity and CSR on firm risk are limited in the context of Malaysia.

scholarly journals MCCG 2012 versus MCCG 2017: Board Gender Diversity and Women CEO Issues within the Male-dominated Oil and Gas Industry

2019 ◽  
Vol 10 (2) ◽  
pp. 122
Author(s):  
Dayana Mastura Baharudin ◽  
Maran Marimuthu
Keyword(s):  
Oil And Gas ◽  
Top Management Team ◽  
Gender Diversity ◽  
Oil And Gas Industry ◽  
Management Team ◽  
Annual Reports ◽  
Top Management ◽  
Gas Industry ◽  
Board Gender Diversity ◽  
The Impact

Purpose – This study investigates the impact of the two main determinants of strengthening the Board and Top Management Team through gender diversity contrasting between the pre and post MCCG 2017 era.Design/methodology/approach – The study will employ the judgmental sampling method followed by descriptive statistics, regression analysis and quantitative content analysis derived from MCCG 2012 and MCCG 2017 as issued by the Malaysian Securities Commission together with prior research to analyse the annual reports in order to explore the reporting of gender diversity across the Board and Top Management Team.Originality/value – This study is a systematic review of prior recent research developments in the Malaysian Securities Commission’s MCCG 2012 and MCCG 2017. The Board of Directors and Top Management Team scoring index could also be applied to other PLCs within the ASEAN oil and gas industry.

Top management team international experience and strategic decision-making

2018 ◽  
Vol 26 (1) ◽  
pp. 50-70 ◽  
Author(s):  
Akbar Azam ◽  
Cristina Boari ◽  
Fabiola Bertolotti
Keyword(s):  
Decision Making ◽  
Top Management Team ◽  
Time Frame ◽  
International Experience ◽  
Top Management Teams ◽  
Management Team ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Top Management ◽  
Content Type

Purpose This study aims to explore the influence of top management team international experience on international strategic decision-making rationality and, subsequently, its effect on decision effectiveness (decision performance). Design/methodology/approach This analysis is based on survey data of small- and medium-sized international Pakistani firms operating in the IT industry. Findings Results show that top management team international experience is positively related to international strategic decision-making rationality, and the latter partially mediates the international experience – decision effectiveness relationship. Research limitations/implications The study is based on data collected from a single industry and focuses on an international decision that occurred within a time-frame of previous four years. Practical implications Findings suggest that international firms, when composing their top management teams, should favor the inclusion of internationally experienced managers. Originality/value The study of the influence of international experience on the decision-making process in general and decision-making rationality in particular has been largely neglected in extant literature. This paper highlights one way through which the international experience of the top management team as a whole relates to the effectiveness of international decisions. The paper also advances emergent managerial cognition literature focusing on the top management team and not individual decision makers.

Takeover defense, collective action and the top management team

2018 ◽  
Vol 41 (12) ◽  
pp. 1375-1394
Author(s):  
Mark A. Tribbitt ◽  
Yi Yang
Keyword(s):  
Defense Mechanisms ◽  
Top Management Team ◽  
Management Team ◽  
Competitive Dynamics ◽  
Strategic Decision ◽  
Top Management ◽  
Collective Actions ◽  
Female Ratio ◽  
Content Type ◽  
Takeover Defense

Purpose The purpose of the study is to examine the interaction between the structure of the top management team, takeover defense mechanisms and firms rate of collective actions. Design/methodology/approach The study uses elements of agency theory, prospect theory and competitive dynamics research to develop a model for examining heterogeneity in the rate of collective actions among firms in the technology sector. A sample of 299 firm-year observations arrayed into panel regression analyses is used. Findings The findings from this study show a positive relationship between the size of the top management team and the count of collective actions when takeover defense mechanisms are present. Further this study finds a negative relationship between top management team ownership and collective actions when these same takeover defense mechanisms are present. Additionally, the female ratio of the top management team is negatively related to collective actions. Research limitations/implications This study was conducted using a sample of technological firms. These relationships may not be generalizable to firms in other contexts. Further, other elements of the firm’s governance structure (i.e. board of directors or shareholders) may play an important role in the strategic decision-making process. Originality/value This study expands on existing research by linking several blocks of literature, top management team literature, competitive dynamics literature and corporate governance literature, into a model to examine firm structural characteristics on the heterogeneity in the propensity to formulate collective actions among firms.

Strategic change: the impact of senior foreign managers, firm size and uncertainty avoidance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kiattichai Kalasin
Keyword(s):  
Firm Size ◽  
Strategic Change ◽  
Emerging Market ◽  
Top Management Team ◽  
Uncertainty Avoidance ◽  
Management Team ◽  
Top Management ◽  
Content Type ◽  
Focal Firm ◽  
The Impact

Purpose This study aims to examine how senior foreign executives in a top management team catalyse strategic change in firms that originated from emerging markets (EMs). It further examines the moderating effects of organisational size and uncertainty avoidance (UA) on the positive relationship between senior foreign manager and strategic change in an organisation. Design/methodology/approach The panel data econometrics and multilevel analyses were adopted to run the model. The author tests hypotheses on 263 emerging market firms (EMFs), originating from nine EMs. Findings Empirical results reveal that senior foreign managers are active agents who can promote and implement strategic change in an organisation. They possess a different set of values, knowledge and experiences that can trigger strategic change. In addition, firm size and UA weaken the relationship between senior foreign manager ratio and strategic change of a firm.. Practical implications This study indicates that recruiting committees of EMFs should consider hiring senior foreign managers to foster a higher degree of strategic change. Nevertheless, firm size and UA may impose implementation difficulties for senior, foreign managers. As a result, the focal firm should be flexible and open to change. Originality/value This study aims to contribute to strategic change and top management team internationalisation literature by promoting the role of senior foreign managers and national culture on strategic change.

Everyone must help: performance implications of CEO and top management team human capital and corporate political activity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Christopher M. Harris ◽  
Lee Warren Brown
Keyword(s):  
Human Capital ◽  
National Collegiate Athletic Association ◽  
Top Management Team ◽  
Chief Executive ◽  
Management Team ◽  
Political Activity ◽  
Top Management ◽  
Corporate Political Activity ◽  
Content Type ◽  
Outcome Differences

PurposeWhile research has shown that multiple actors, both internal and external to the organization, influence performance, oftentimes, these actors are studied in isolation. This paper aims to examine the performance implications of both top management team (TMT) and chief executive officer (CEO) human capital. In addition, the authors consider external actors' influence on performance by examining corporate political activity (CPA).Design/methodology/approachThe authors use a sample of National Collegiate Athletic Association (NCAA) football teams, examining human capital data on the head coaches and the assistant coaches, combined with the schools' participation in NCAA football committees.FindingsThe study findings indicate that organizations engage in various market and nonmarket strategies in concert, and that different strategies result in performance outcome differences. Specifically, we examine how the use of CEO and TMT human capital and CPA interact and influence performance.Practical implicationsThe authors examine the moderating effects of political activity on the human capital–performance relationship for both top leaders and TMTs. Organizations benefit from investing in the human capital of their leaders internally and CPA externally.Originality/valueWhile organizations engage in market and nonmarket actions in concert, management research has generally studied these concepts in isolation. This paper suggests that both market and nonmarket activities can influence performance.

The relationships between CEOs' psychological attributes, top management team behavioral integration and firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hasan Yousef Aljuhmani ◽  
Okechukwu Lawrence Emeagwali ◽  
Bashar Ababneh
Keyword(s):  
Firm Performance ◽  
Direct Effect ◽  
Top Management Team ◽  
Management Team ◽  
Behavioral Characteristics ◽  
Top Management ◽  
Content Type ◽  
Behavioral Integration ◽  
Self Evaluation ◽  
Core Self

PurposeThis study aims to investigate the impact of chief executive officers' (CEO’s) core self-evaluation and grandiose narcissism on firm performance. This work combines bright and dark personality sides to explore how complex CEO's behavioral characteristics affect firms' outcomes. In addition, top management team (TMT) behavioral integration is considered as an organizational setting that acts as a conductive device bridging CEOs behavioral characteristics with firms' performance.Design/methodology/approachThe data for this study are based on 187 respondents, including CEOs and TMTs, across medium and large firms in Turkey through an online survey using a questionnaire. Structural equation modeling (SEM) was used to analyze the data collected.FindingsThe study finds that only CEO-TMT narcissism and TMT behavioral integration have a positive direct effect on firm financial performance. Contrary to expectations, CEO-TMT core self-evaluation has a negative direct effect on firm performance. Moreover, the results show that environmental dynamism interacts positively and significantly with CEO-TMT narcissism. Thus, the claim that TMT behavioral integration has a mediating effect is not supported in the context of medium and large firms in Turkey.Originality/valueThis study contributes to the upper echelons theory (UET) literature by highlighting the boundary conditions under which narcissistic CEOs can interact with more behaviorally integrated TMT members to exchange information, make joint decisions and collaborate in a relatively dynamic environment, as well as aggregating the bright side and dark side of CEOs personality traits and examining their effects alongside those of TMT behavioral integration on the firm performance. Finally, this study enriches the upper echelons literature by providing evidence from Turkey.

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