The relationship between top management team’s structuraldifferences and corporate acquisitions

Yang Lin; Yang Qian

PDF(899 KB)

Science Research Management ›› 2012, Vol. 33 ›› Issue (11) : 57-67.

The relationship between top management team’s structuraldifferences and corporate acquisitions

Yang Lin¹, Yang Qian²

Author information +

History +

Abstract

By taking the listed companies of Chinese information technology industry during the period from 2005 to 2010 as a research sample, the relationship between Top Management Team (TMT) structural differences, including background characteristics of TMT and vertical differences between TMT and president of the board, and corporate acquisitions is empirically examined. The results of Logistic regression analysis indicate that firstly, the background characteristics of TMT will significantly influence the occurrence probability and pattern of corporate acquisitions, among them, average age and tenure of TMT are significantly negatively correlated with corporate acquisitions occurrence probability and pattern, but the male ratio of TMT has a positive effect on the corporate acquisitions occurrence probability and pattern. Secondly, the vertical differences between TMT and president of the board will positively influence the corporate acquisition occurrence probability; among them, the differences between age and gender of TMT have a significantly positive effect on corporate acquisition occurrence probability. The results have theoretical and practical implications for optimizing TMT structure, improving company’s internal governance environment, and designing enterprise development strategies.

Key words

TMT / structural difference / corporate acquisition / Logistic regression model / information technology industry

Cite this article

EndNote

Ris (Procite)

Bibtex

Download Citations

Yang Lin, Yang Qian. The relationship between top management team’s structuraldifferences and corporate acquisitions[J]. Science Research Management. 2012, 33(11): 57-67

References

[1] Lee, G. K. and Lieberman, M. B. Acquisition VS. internal development as modes of market entry[J]. Strategic Management Journal, 2010, 31(2): 140-158.
[2] King, D.R., Dalton, D.R., Daily, C.M. and Covin, J.G. Meta-analysis of post-acquisition performance: indications of unidentified moderators[J]. Strategic Management Journal, 2004, 25(2): 187-200.
[3] Ellis, K.M., Taco, H.R. and Lamont, B.T. The effects of procedural and informational justice in the integration of related acquistions[J]. Strategic Management Journal, 2009, 30(2): 137-161.
[4] 马彩凤.高层管理团队是组织绩效提升的关键[J].管理科学文摘,2006(2):14-15.
[5] Tusi, A. S. and O’Reilly, C.A. Beyond simple demographic effects: the importance of relational demography in superior-subordinate dyads[J]. Academy of Management Journal, 1989, 32(2): 402-423.
[6] Tsui, A. S. and Gutek, B.A. Demographic differences in organizations: current research and future directions[M]. Lexington Books, Lanham M.D., 1999.
[7] Tsui A. S., Porter, L.W. and Egan, T. D. When both similarities and dissimilarities matter: extending the concept of relational demography[J]. Human Relations, 2002, 55(8): 899-929.
[8] 张龙,刘洪.高管团队中垂直对人口特征差异对高管离职的影响[J].管理世界,2009(4):108-118
[9] 何威风, 刘启亮.我国上市公司高管背景特征与财务重述行为研究[J].管理世界, 2010(7): 144-155.
[10] Hambrick, D. C. and Mason, P.A. Upper Echelons: The organization as a reflection of its top managers[J]. Academy of Management Review, 1984, 9(2):193-206.
[11] Wiersema, M.F. and Bantel, K.A. Top management team demography and corporate strategic change[J]. Academy of Management Journal, 1992, 35(1): 91-121.
[12] Prendergast, C.and Stole, L. Impetuous youngsters and jaded old-timers: Acquiring a reputation for learning[J]. Journal of Political Economy, 1996, 104(6): 1105-1134.
[13] Herrmann, P. and Datta, D.K. CEO experiences: effects on the choice of FDI entry mode[J]. Journal of Management Studies, 2006, 43(4): 755-778.
[14] Croson, R. and Gneezy, U. Gender differences in preferences[J]. Journal of Economic Literature, 2009, 47(2): 448-474.
[15] Yordanova, D.I and Alexandrova-Boshnakova, M.I. Gender effects on risk-taking of entrepreneurs: evidence from Bulgaria[J]. International Journal of Entrepreneurial Behaviour & Research, 2011, 17(3): 272-295.
[16] Watson, J. and Robinson, S. Adjusting for risk in comparing the performance of male-and female-controlled SMEs[J]. Journal of Business Venturing, 2003, 18(6): 773-788.
[17] 郭敏华,郭逎锋,邱耀初,范秉航.性别与投资行为:以台湾股票市场为例[J].Journal of Financial Studies,2005,13(2): 1-28.
[18] Jurkus, A.F., Park, J.C., and Woodard, L.S. Women in top management and agency costs[J]. Journal of Business Research, 2011, :180-186.
[19] Miller, D. Stale in the saddle: CEO tenure and the match between organization and environment[J]. Management Science, 1991, 37(1): 34-52.
[20] Hambrick, D.C., Geletkanycz, M. and Frederickson, J. Top executive commitment to the status quo: some test of its determinants[J]. Strategic Management Journal, 1993, 14(6): 410-418.
[21] Boeker, W. Strategic change: the influence of managerial characteristics and organizational growth[J]. Academy of Management Journal, 1997, 40(1): 152-170.
[22] Elenkov, D.S., Judge, W. and Wright, P. Strategic leadership and executive innovation influence: an international multi-cluster comparative sutdy[J]. Strategic Management Journal, 2005, 26(7): 665-682.
[23] Hitt, M.A. and Tyler, B.B. Strategic Decision Models: Integrating Different Perspectives[J]. Strategic Management Journal,1991, 12(5): 327-351.
[24] Bantel, K.A. and Jackson, S. Top management and innovation in banking: does the composition of top team make a difference?[J]. Strategic Manageement Journal, 1989, 10(1): 107-124.
[25] Tihanyi, L., Ellstrand, A.E., Daily, C.M. and Dalton, D.R. Composition of the top management team and firm international diversification[J]. Journal of Management, 2000, 26(6): 1157-77.
[26] Goll I., Johnson N. B., and Rasheed, A.A. Top management team demographic characteristics, business strategy, and firm performance in the US airline industry: The role of managerial discretion[J]. Management Decision, 2008, 46(2): 201-222.
[27] Hofstede, G. Culture’s consequences: Comparing values, behaviors, institutions, and organizations across nations (2nd ed.)[M]. Thousand Oaks, California: Sage Publications, Inc., 2001.
[28] Wong, S. M.L., Opper, S., and Hu, R.Y. Shareholding structure, depoliticization and firm performance: lessons from China’s listed firms[J]. Economics of Transition, 2004, 12(1): 29-66.
[29] Brew, F. P. and David, R. C. Style of managing interpersonal workplace conflict in relation to status and face concern: a study with Anglos and Chinese[J]. The International Journal of Conflict Management, 2004, 15(1): 27-56.
[30] Hambrick, D.C., Cho, T.S., and Chen, Ming-Jer. The influence of top management team heterogeneity on firm’s competitive moves[J]. Administrative Science Quarterly, 1996, 41(4): 659-684.
[31] Elron, E. Top management teams within multinational corporations: effects of worker heterogeneity[J]. Leadership Quarterly, 1997, 8(4): 393-412.
[32] 魏立群,王智慧.我国上市公司高管特征与企业绩效的实证研究[J].南开管理评论,2002(4):16-22.
[33] 焦长勇,项保华.企业高层管理团队特性及构建研究[J].自然辩证法通讯,2003(2):57-62.
[34] Crossland, C. and Hambrick, D.C. Differences in managerial discretion across countries: how national-level institutions affect the degree to which CEOs matter[J]. Strategic Management Journal, 2011, 32(8): 797-819.