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Diverse Dimensions: Exploring Top Management Team Diversity and its Impact on M&A Performance

Zhao, Ruihong LU and Stefano Nanayakkara, Vithanage Don LU (2024) MGTN59 20241
Department of Business Administration
Abstract (Swedish)
This thesis addresses the research problem of the importance for contextualized understanding of diversity's impact on organizational performance, particularly within top management teams (TMTs) during mergers and acquisitions (M&A) activities. Focusing on publicly traded companies in the technology and financial services sectors in the United States, the research aims to investigate how TMT diversity, specifically in terms of tenure and educational background, influences M&A performance measured by return on asset (ROA) and revenue growth rate. By examining the correlation between TMT diversity and M&A performance, the study seeks to provide nuanced insights into the relationship between specific diversity attributes and post-M&A... (More)
This thesis addresses the research problem of the importance for contextualized understanding of diversity's impact on organizational performance, particularly within top management teams (TMTs) during mergers and acquisitions (M&A) activities. Focusing on publicly traded companies in the technology and financial services sectors in the United States, the research aims to investigate how TMT diversity, specifically in terms of tenure and educational background, influences M&A performance measured by return on asset (ROA) and revenue growth rate. By examining the correlation between TMT diversity and M&A performance, the study seeks to provide nuanced insights into the relationship between specific diversity attributes and post-M&A performance. Empirical analysis reveals limited negative correlations between tenure diversity and ROA, alongside limited positive correlations between educational diversity and ROA. However, no significant correlations were observed between tenure/educational diversity and M&A performance when revenue growth rate was employed as the key metric. These findings contribute to the understanding of non-linear relationships between TMT diversity and M&A performance when going through major organizational restructuring processes, highlighting the importance of considering diverse factors in organizational decision-making processes. (Less)
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author
Zhao, Ruihong LU and Stefano Nanayakkara, Vithanage Don LU
supervisor
organization
course
MGTN59 20241
year
type
H1 - Master's Degree (One Year)
subject
language
English
id
9155716
date added to LUP
2024-06-24 13:34:16
date last changed
2024-06-24 13:34:16
@misc{9155716,
  abstract     = {{This thesis addresses the research problem of the importance for contextualized understanding of diversity's impact on organizational performance, particularly within top management teams (TMTs) during mergers and acquisitions (M&A) activities. Focusing on publicly traded companies in the technology and financial services sectors in the United States, the research aims to investigate how TMT diversity, specifically in terms of tenure and educational background, influences M&A performance measured by return on asset (ROA) and revenue growth rate. By examining the correlation between TMT diversity and M&A performance, the study seeks to provide nuanced insights into the relationship between specific diversity attributes and post-M&A performance. Empirical analysis reveals limited negative correlations between tenure diversity and ROA, alongside limited positive correlations between educational diversity and ROA. However, no significant correlations were observed between tenure/educational diversity and M&A performance when revenue growth rate was employed as the key metric. These findings contribute to the understanding of non-linear relationships between TMT diversity and M&A performance when going through major organizational restructuring processes, highlighting the importance of considering diverse factors in organizational decision-making processes.}},
  author       = {{Zhao, Ruihong and Stefano Nanayakkara, Vithanage Don}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Diverse Dimensions: Exploring Top Management Team Diversity and its Impact on M&A Performance}},
  year         = {{2024}},
}