Relationships among top management teams, the power of the boards, and firm performances in Taiwan high-technology industry

Authors: Yun-Shi Liu

Journal: Chiao Da Management Review. Jun. 2006, 26(1): 173-200.

Keywords: Top management team; The power of the boards; Corporate performance; High-tech industry

Abstract:
Using a data set on 236 Taiwan listed electronic firms, this research examines their top management teams (TMTs), and whether board power will interact with TMT characteristics to affect firm performances. The study finds that education heterogeneity of TMT is negatively related to corporate performance, and firms with higher TMT shareholdings perform better. In addition, the associations between the interaction effects of TMT characteristics (including size, education, education heterogeneity, tenure, tenure heterogeneity, and shareholdings) with board powers (including board shareholdings and the ratio of independent board members) and firm performances, are all significantly positive.