Paper Infomation
TMT Heterogeneity and Firm Performance: The Moderating Effect of Managerial Discretion
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Author: Pengbin Gao, Yiyuan Zhang, Yan Xiang, Shaocong Bo
Abstract: Now the top management team and managerial discretion play an important role in driving the firms’ development. This paper built a theoretical model to explore the effect of top management team heterogeneity on firm performance, and analyze the moderating role of managerial discretion. Based on the data of 167 listed firms from Shanghai Stock Exchange in 2019, this paper construct a multiple regression model and tested the hypothesis. The empirical results show that gender heterogeneity, tenure heterogeneity and education level heterogeneity have a negative effect on firms performance. At the same time managerial discretion can partially moderates the relationship between the heterogeneity of top management team and firm performance, in which capital intensity and the firm size play a negative moderating role, and duality play a positive moderating role. According to the research results, this paper also puts forward corresponding suggestions to improve the firm performance.
Keywords: Top Management Team, Team Heterogeneity, Firm Performance, Managerial Discretion
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