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Top Management Team Heterogeneity and the Performance of Cross-Border M&A

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  • Yingna Wu
  • Liang Ding
  • Xuan Song
  • Jun Chen

Abstract

In this paper, we aim to investigate the impact of the top management team (TMT) on the performance of cross-border M&A, using a sample of 270 cross-border M&A events of Chinese listed companies. We find that the heterogeneity of TMT characteristics could affect the performance of cross-border M&A in different ways. More specifically, a higher heterogeneity in gender can improve the M&A performance significantly, while more heterogeneities in tenure and overseas background lead to a significant reduction in long-term and short-term M&A performances, respectively. We believe that our study can contribute to a different perspective for the selection of the executive teams of M&A companies. This, in turn, is conducive to optimizing the structure of the senior management team, and may help companies make better decisions and improve their performance.

Suggested Citation

  • Yingna Wu & Liang Ding & Xuan Song & Jun Chen, 2023. "Top Management Team Heterogeneity and the Performance of Cross-Border M&A," SAGE Open, , vol. 13(2), pages 21582440231, June.
    • Handle: RePEc:sae:sagope:v:13:y:2023:i:2:p:21582440231182649
    DOI: 10.1177/21582440231182649
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    References listed on IDEAS

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