Diverse more than ever

The results of prior research on the impact of top management team (TMT) diversity on corporate performance have been varied and inconsistent. In this study, the operational definitions of TMT and diversity were checked in academic papers published between 2005 and 2020 on TMT diversity. The results confirmed three patterns for the operational definition of TMT: (a) extracted by title rank, (b) selected by CEO or equivalent top manager, and (c) executives announced in the company's public information/database. As for diversity, in addition to the studies that use conventional indices that express the various attributes of executives, it was confirmed that there exist many studies that consider diversity from the aspects of separation and disparity. Such “diversity” in the operational definition is considered the cause of the lack of consistency between TMT diversity and corporate performance.