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

Abstract

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

CLC Number:

F279.23

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

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