Abstract

The purpose of the paper is to study the effect of board effectiveness on the Top Management Team demographic characteristics of 274 American firms. The research mobilizes theoretically the upper echelons, the agency and the cognitive theories and empirically the clustering and the discriminating analysis. The results indicate that the TMT demographic attributes are not tied systematically to the board efficiency according to contractual approach of corporate governance. The relationship between the board characteristics and the TMT traits is not linear. The study contributes to corporate governance knowledge by highlighting the strategic role of the boards dealing with the TMT choice.

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