AN UPPER ECHELONS EXPLANATION OF ACQUISITION OUTCOMES

Patricia Doyle Corner, Angelo J. Kinicki

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

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.

Original languageEnglish (US)
Pages (from-to)83-120
Number of pages38
JournalAdvances in Mergers and Acquisitions
Volume4
DOIs
StatePublished - 2004
Externally publishedYes

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Upper echelons
Top management teams
Demographics
Financial performance
Diversity measures
Latent variable models
Complexity theory
Structural properties
Team diversity
Cognitive complexity

ASJC Scopus subject areas

  • Business and International Management

Cite this

AN UPPER ECHELONS EXPLANATION OF ACQUISITION OUTCOMES. / Doyle Corner, Patricia; Kinicki, Angelo J.

In: Advances in Mergers and Acquisitions, Vol. 4, 2004, p. 83-120.

Research output: Contribution to journalArticle

Doyle Corner, Patricia ; Kinicki, Angelo J. / AN UPPER ECHELONS EXPLANATION OF ACQUISITION OUTCOMES. In: Advances in Mergers and Acquisitions. 2004 ; Vol. 4. pp. 83-120.
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