The influence of top management team traits on corporate financial performance in the US

Abstract

This article aims to study the effect of human capital on the financial performance of the most admired American firms. Human capital is measured in terms of the demographic attributes and the diversity of top managers. The use of panel linear multiple regressions reveals that the most successful firms are characterized by coherent and homogeneous top management teams with moderate tenure and excellent wages. Moreover, the heterogeneity of managers is recommended for fairly young top management teams and for larger firms operating in a turbulent environment. © 2014 ASAC.