An Empirical Study On The Relationship Between Top Management Team Characteristics And Enterprise Merger&Aquisition

Merger and acquisition (M&A) has become the important means to implementthe enterprises’ strategic expansion and it is helpful to realize the resource allocationin global market. How to capitalize upon M&A to realize business restructuring，update the products and services offered，and enhance corporate governance，hasemerged as a growing concern for the management and scholars. But most enterprisesdidn’t gain success in M&A. What is the reason of M&A happened frequently since itcan not bring better proceeds to the enterprises. Since top management team (TMT)theory and Upper Echelons have been introduced into the areas of strategy andorganization science, there are a large number of empirical studies in this area. Themodel on the relationship between TMT characteristics and firm strategies has beenwidely accepted. Many empirical studies have shown that TMT characteristics hasrelationship with the performance of M&A, but research on the relationship betweentop executives and the causes of M&A is still in the initial stage. Based on UpperEchelons and theory of M&A causes, this paper integrate and synthesize boundedrationality and strategic decisions on M&A, explores the relationship between TMTcharacteristics and M&A.This paper clarifies the rationality and effectiveness of the relationship betweenTMT characteristics and M&A by means of literature review and theoretical analysis.It chooses average age, percentage of male, average term and average educationalgrade as the TMT characteristics, explores the relationship between TMTcharacteristics and possibility of M&A, and the pertinence of TMT characteristics andM&A mode by empirical study. Finally, in terms of practice, this paper proposesseveral policy recommendations about efficiency and effect of M&A.Selecting listed companies from information technology industry as the researchsamples, in which M&A is active. This paper sheds light on two specific aspects.Firstly, with analysis on the samples, this paper draws a conclusion as follows: there isa positive correlation between M&A probability and PMT, but the MAGE and AEDUare negative correlations. Secondly, this paper saves190M&A samples which areclassified in modes of M&A, finds out that TMT characteristics of listed companiesfrom information technology industry exerts influence on M&A.