Top management team (TMT) tenure diversity and firm performance

Tanikawa, Tomohiko; Jung, Yuhee

doi:10.1108/ijoa-02-2014-0739

Cited by 30 publications

(17 citation statements)

References 52 publications

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“…Given the assumption and that TMT members have quite different work values and communication styles depending on their age, it is assumed that the dynamics that forms inside TMTs may differ greatly, even between TMTs with the same age distribution, because it depends on the average age of members making up TMTs. Also, empirical studies have shown that TMT average age significantly affects firm outcomes, such as firms’ financial performance (Kor and Misangyi, 2008; Tanikawa and Jung, 2016) and international diversification (Tihanyi et al , 2000). Based on these studies, context in TMT is clearly dependent on average age.…”

Section: Theory and Hypothesesmentioning

confidence: 99%

Top management team diversity and firm performance: exploring a function of age

Tanikawa

Kim

Jung

2017

TPM

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Purpose Based on socioemotional selectivity theory, the authors aimed to develop and test hypotheses that identify the direct effect of top management team (TMT) age diversity on firms’ financial performance (return on equity [ROE], return on assets [ROA]) and the interactive effect of TMT age diversity and TMT average age on firms’ financial performance. Design/methodology/approach The paper presents results from a quantitative study of 867 TMTs in Korean manufacturing firms. Multiple hierarchical regression analysis was used to test the hypotheses. Findings The results show that TMT age diversity had a negative and significant main effect on ROE but not on ROA. They also indicate that the negative relationship between TMT age diversity and firm performance (ROE) was attenuated when the members of TMTs were relatively older. Originality/value First, this study extends existing TMT research, which mainly focuses on macro factors, such as industry and environment, by using micro factors, including TMT age diversity and TMT average age. Second, this paper combines and extends previous TMT studies, which have been dominated by either “property” or “tendency”, by examining the interactive effect of the distributional property (diversity) and central tendency (average) of TMT age on firms’ financial performance. Finally, this study indicates that socioemotional selectivity theory may be useful to explain the link between TMT age diversity and firms’ financial performance.

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Section: Theory and Hypothesesmentioning

confidence: 99%

Top management team diversity and firm performance: exploring a function of age

Tanikawa

Kim

Jung

2017

TPM

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“…The proportion of women on board variable had a coefficient of 0.041882 and a significance level of 0.3200, meaning that the proportion of women on board variable has no significant relationship to the return on equity variable. This result is supported by research by Tanikawa (2017), but contrary to research conducted by Gomez (2018) and Kuzey (2016), who found a significant positive relationship between the proportion of women on board with return on equity. In addition, the hypothesis in this study also states that there is a significant positive relationship between the variables of the proportion of women on board with return on equity.…”

Section: Resultsmentioning

confidence: 48%

The Effect of Gender Diversity on Company Financial Performance

Satria¹,

Mahadwartha²,

Ernawati³

2020

Proceedings of the 17 Th International Symposium on Management (INSYMA 2020)

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This study aims to examine the effect of gender diversity on the board of commissioners and board of directors on the financial performance of non-financial companies listed on the Indonesia Stock Exchange over the period of 2013-2017. The analytical method used was multiple linear regressions with the classical assumption test. As a result, the presence of women on the board of directors and board of commissioners measured by dummy and the proportion of women councils did not affect financial performance as measured by return on asset and return on equity. Meanwhile, control variables of company size and leverage are proven to influence financial performance significantly.

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“…Eponymy and the TMT Average Age were used as instrumental variables for family management in the first stage of the estimation process. Eponymy is a dummy variable that assumes a value of one if the firm name contains family managers' personal names (Hamelin, 2013), while the TMT Average Age is captured by averaging each TMT member's age (Tanikawa and Jung, 2016). In line with Semadeni et al .’s (2014) recommendation concerning the instruments' validity, both instrumental variables strongly relate to FM, but not to the dependent variable (growth) in the output models.…”

Section: Resultsmentioning

confidence: 99%

A Mixed Gamble Approach of the Impact of Family Management on Firm's Growth: A Longitudinal Analysis

Bauweraerts

Diaz‐Moriana

Arzubiaga

2019

European Management Review

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We draw upon the socioemotional wealth perspective and the mixed gamble approach to employ a five-year panel dataset of 223 Belgian private family firms to investigate the relationship between family management and growth, with family management ownership, generational involvement, and the CEO's family status moderating this link. We find an inverted U-shaped relationship, with growth reaching its maximum at intermediate levels of family management. Additionally, we demonstrate that family management ownership, generational involvement, and the presence of a family CEO hamper the family management-growth link: all these variables attenuate the positive effect of low to moderate family management, and accentuate the negative impact of high family management. Consequently, our research contributes to a deeper understanding of the relationship between family management and growth.

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Top management team (TMT) tenure diversity and firm performance

Cited by 30 publications

References 52 publications

Top management team diversity and firm performance: exploring a function of age

Top management team diversity and firm performance: exploring a function of age

The Effect of Gender Diversity on Company Financial Performance

A Mixed Gamble Approach of the Impact of Family Management on Firm's Growth: A Longitudinal Analysis

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