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| The Effect of Board Professional Background on TMT Diversity |
| WU Yue，CUI Xun |
| Nankai University, Tianjin, China |
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Abstract In the study, we address the question of whether board professional background diversity will increase the preference of TMT diversity or decrease the preference. Drawing on Attribution Theory, Social Classification Theory on board，this study posits a contingent model arguing that with a high level of background diversity, the board will influence the degree of TMT diversity in terms of professional background. In addition, CEO power would negatively moderate the effect above. Hypotheses are tested by analyzing TMT diversity in a sample of Chinese listed firms between 2006 and 2015. The regression results show that board professional background diversity is significantly positive related to TMT professional background diversity. Furthermore, CEO tenure and CEO elite educational background would negatively moderate the link above, while ownership power has no significant effects on the relationship.
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Received: 21 May 2018
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