Is there influence of Top Management Team characteristics in the capital structure of financial companies?

Paula de Souza Michelon, Rogério João Lunkes, Antonio Cezar Bornia


Objective: to analyze the relationship between the characteristics of Top Management Team and the capital structure of financial companies.

Originality: The Upper Echelons Theory (UET) advocates that the values, experiences and personalities of Top Management Team influence the strategic choices of companies. In this way, different teams of managers are expected to choose capital structures that best meet the needs of different strategies.

Results: TMT's average age was that which had a significant positive relationship with the company's third party capital level. The variables mean time in office and average educational level of TMT were negatively related to corporate indebtedness, but without strong statistical significance.

Method: Hhypotheses of theoretical models were tested through linear and multiple linear regression. The sample consisted of 95 financial companies listed in Brazil, Bolsa, Balcão in July 2019. The factors analyzed were: TMT's average age, TMT's average educational level, TMT's average time in the company and the company's third-party capital level.

Contributions: This research contributes to the strategy of companies in the composition of their management teams, since they are related to the performance of organizations. From the theoretical point of view, it is able to ratify the assumptions of the Upper Echelons Theory.


Top management team; Capital structure; Cost of capital; Third-party capital.


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