Top management team prestige and organizational legitimacy

An examination of investor perceptions

Samuel Certo, Frank Hodge

Research output: Contribution to journalArticle

14 Citations (Scopus)

Abstract

In this study we use survey data to examine the influence of two intangible resources, top management team (TMT) prestige and organizational legitimacy, on investor perceptions of a firm's future financial performance and future financial performance risk. Results show that investors' general perceptions of TMT prestige and organizational legitimacy are associated with their perceptions of future financial performance. We also find that organizational legitimacy partially mediates the relationship between TMT prestige and firm financial performance. We find no such effects when examining investor perceptions of future financial performance risk.

Original languageEnglish (US)
Pages (from-to)461-477
Number of pages17
JournalJournal of Managerial Issues
Volume19
Issue number4
StatePublished - Dec 2007
Externally publishedYes

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Top management teams
Organizational legitimacy
Investors
Prestige
Financial performance
Survey data
Intangible resources

ASJC Scopus subject areas

  • Management Information Systems

Cite this

Top management team prestige and organizational legitimacy : An examination of investor perceptions. / Certo, Samuel; Hodge, Frank.

In: Journal of Managerial Issues, Vol. 19, No. 4, 12.2007, p. 461-477.

Research output: Contribution to journalArticle

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