Determinants of Top Management Team Tenure in Public Companies: An Empirical Study in the United States

Epstein, David
March 2013
International Journal of Management;Mar2013 Part 2, Vol. 30 Issue 1 Part 2, p301
Academic Journal
TMT tenure impacts organizational performance through its effects on R&D intensity, entrepreneurial orientation, a greater diversity of viewpoints, status quo commitment, and even illegal activity however its antecedents have not been explored. This paper examines the impact of CEO tenure, CEO duality, board tenure, inside and outside ownership, and inside and outside directors on TMT tenure. I examine a longitudinal sample of 290 firms in 4 fields covering a ten year period using fixed effects panel regression. CEO tenure, board tenure, and outside ownership significantly impact TMT tenure. Most intriguingly, duality was found to be negatively related to TMT tenure. These results demonstrate the pervasive inertial influence of CEO and board tenure and suggest that outside ownership counterbalances these influences to some degree.


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