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Top management team knowledge heterogeneity, ownership structure and financial performance: Evidence from Chinese IT listed companies

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  • Cui, Yu
  • Zhang, Yamin
  • Guo, Jingjing
  • Hu, Hao
  • Meng, Hua

Abstract

Based on upper echelon theory, this study investigates the relationship between the knowledge heterogeneity of top management teams and the financial performance of Chinese IT-listed companies. Moreover, we explore the moderating role of the ownership structure on the above relationship. The results indicate that overseas background heterogeneity, functional experience heterogeneity and financial performance are significantly and positively correlated, while academic background heterogeneity is significantly and negatively correlated with financial performance. However, the effects of management experience heterogeneity, financial background heterogeneity, and political background heterogeneity on financial performance are not significant. Moreover, ownership as a moderating variable improved the significance level among overseas background heterogeneity, functional experience heterogeneity and financial performance. Based on these findings, the implications for how to optimize the knowledge structure of top management teams are discussed.

Suggested Citation

  • Cui, Yu & Zhang, Yamin & Guo, Jingjing & Hu, Hao & Meng, Hua, 2019. "Top management team knowledge heterogeneity, ownership structure and financial performance: Evidence from Chinese IT listed companies," Technological Forecasting and Social Change, Elsevier, vol. 140(C), pages 14-21.
    • Handle: RePEc:eee:tefoso:v:140:y:2019:i:c:p:14-21
    DOI: 10.1016/j.techfore.2018.12.008
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    References listed on IDEAS

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    3. Li, Ziyang & Han, Ning & Zeng, Qing & Li, Yu, 2022. "Executive team heterogeneity, equity pledges, and stock Price crash risk: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 84(C).
    4. Franklin Djimta & Georges Mfouapon & Jules Feudjo, 2022. "Is the Organizational Performance of Public Limited Companies a Function of the Heterogeneity of the Observable Characteristics of the Management Team? [La performance organisationnelle des société," Post-Print hal-03616136, HAL.
    5. Lu, Qicheng & Meng, Xiangju & Su, Jiaoyue & Au Kai Ming, Alan & Wu, Yongjie & Wang, Chengqi, 2023. "TMT functional background heterogeneity and SMEs’ performance: The role of dynamic capabilities and business environment," Journal of Business Research, Elsevier, vol. 160(C).
    6. Muddassar Sarfraz & Syed Ghulam Meran Shah & Larisa Ivascu & Muhammad Asim Ali Qureshi, 2022. "Explicating the impact of hierarchical CEO succession on small‐medium enterprises' performance and cash holdings," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 2600-2614, April.
    7. Ullah, Farid & Jiang, Ping & Elamer, Ahmed A. & Owusu, Andrews, 2022. "Environmental performance and corporate innovation in China: The moderating impact of firm ownership," Technological Forecasting and Social Change, Elsevier, vol. 184(C).

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