THE IMPACT OF TMT BOARD MEMBER CONTROL AND ENVIRONMENT ON POST-IPO PERFORMANCE

THE IMPACT OF TMT BOARD MEMBER CONTROL AND ENVIRONMENT ON POST-IPO PERFORMANCE

We draw on theories of entrepreneurial firms to explore the impact of top management team (TMT) board control on holding period returns (HPRs). We posit a complex relation between a firm's performance after initial public offering (IPO) and the proportion of TMT members on its board. HPRs incre...

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Veröffentlicht in:Academy of Management journal 2010-06, Vol.53 (3), p.572-595
Hauptverfasser: WALTERS, BRUCE A., KROLL, MARK, WRIGHT, PETER
Format: Artikel
Sprache:eng
Schlagworte:
Board of directors
Boards of directors
Business management
Business structures
Capitalism
Capitalization
Corporate strategies
Entrepreneurship
Environmental technology
Financial performance
Impact analysis
Industrial market
Industrial products
Industry
Initial public offering
Initial public offerings
Investment analysis
Senior management
Small and medium sized enterprises
Studies
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Beschreibung
Zusammenfassung:We draw on theories of entrepreneurial firms to explore the impact of top management team (TMT) board control on holding period returns (HPRs). We posit a complex relation between a firm's performance after initial public offering (IPO) and the proportion of TMT members on its board. HPRs increased modestly as TMT board membership rose to 50 percent, increased dramatically as it rose from 50 to 75 percent (the "optimal" range), and decreased materially as it rose beyond 75 percent. Further, environmental conditions influenced the focal relationship, in some cases in unpredictable ways, even when TMT board control was optimal.
ISSN:0001-4273
1948-0989
DOI:10.5465/amj.2010.51468968