TY - JOUR
T1 - AN UPPER ECHELONS EXPLANATION OF ACQUISITION OUTCOMES
AU - Doyle Corner, Patricia
AU - Kinicki, Angelo J.
PY - 2004
Y1 - 2004
N2 - The article applies upper echelon theory to explain variation in parent firms' post-acquisition financial performance. We develop and test a latent variable model hypothesizing that top management team (TMT) demographic diversity affects financial outcomes through teams' collective beliefs. In so doing we identify three constructs which potentially underlie classic TMT demographic diversity measures. Also, we propose two fundamental structural properties of team beliefs extrapolated from individual level cognitive complexity theory. Results show both positive and negative effects on financial outcomes from the TMT demographic diversity constructs through the belief constructs. We discuss the importance of including mediating constructs when attempting to unravel TMT diversity's effects on firm level outcomes.
AB - The article applies upper echelon theory to explain variation in parent firms' post-acquisition financial performance. We develop and test a latent variable model hypothesizing that top management team (TMT) demographic diversity affects financial outcomes through teams' collective beliefs. In so doing we identify three constructs which potentially underlie classic TMT demographic diversity measures. Also, we propose two fundamental structural properties of team beliefs extrapolated from individual level cognitive complexity theory. Results show both positive and negative effects on financial outcomes from the TMT demographic diversity constructs through the belief constructs. We discuss the importance of including mediating constructs when attempting to unravel TMT diversity's effects on firm level outcomes.
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U2 - 10.1016/S1479-361X(04)04004-9
DO - 10.1016/S1479-361X(04)04004-9
M3 - Article
AN - SCOPUS:36148968418
SN - 1479-361X
VL - 4
SP - 83
EP - 120
JO - Advances in Mergers and Acquisitions
JF - Advances in Mergers and Acquisitions
ER -