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<p>Diversity within top management teams (TMTs) has significant implications for firm financial performance, particularly in dynamic industries like the automotive sector. This paper analyzes the relationship between TMT diversity and financial outcomes in companies associated with the Volkswagen Group, operating in an intensely competitive market marked by technological advancements. This comprehensive paper synthesizes studies investigating the correlation between TMT diversity and financial performance within the automotive domain. Employing quantitative approaches, these studies assess demographic factors such as gender, age, ethnicity, and educational background. The analysis unveils distinct patterns of impact. Gender diversity within TMTs exhibits a positive influence on financial performance, with heightened profitability and increased market value being notable outcomes. Age diversity shows a nuanced trend, with moderate levels enhancing strategic decision-making capabilities and fostering innovation. Increased ethnic diversity within TMTs is associated with elevated innovation and overall firm performance. Furthermore, educational diversity within TMTs is found to bolster firm performance, underscoring its pivotal role in strategic decision-making and innovation. By offering a comprehensive synthesis of TMT diversity’s connection to financial performance within the Volkswagen Group’s context, this paper contributes novel perspectives. The study emphasizes the methodologies utilized, outlines key findings, and underscores the original contributions made by existing research. This study illuminates the profound influence of TMT diversity on shaping strategic decisions and fostering innovation in the automotive sector. Importantly, it highlights the crucial role of TMT diversity in driving positive financial outcomes.</p>
</abstract>

Diversity within top management teams (TMTs) has significant implications for firm financial performance, particularly in dynamic industries like the automotive sector. This paper analyzes the relationship between TMT diversity and financial outcomes in companies associated with the Volkswagen Group, operating in an intensely competitive market marked by technological advancements. This comprehensive paper synthesizes studies investigating the correlation between TMT diversity and financial performance within the automotive domain. Employing quantitative approaches, these studies assess demographic factors such as gender, age, ethnicity, and educational background. The analysis unveils distinct patterns of impact. Gender diversity within TMTs exhibits a positive influence on financial performance, with heightened profitability and increased market value being notable outcomes. Age diversity shows a nuanced trend, with moderate levels enhancing strategic decision-making capabilities and fostering innovation. Increased ethnic diversity within TMTs is associated with elevated innovation and overall firm performance. Furthermore, educational diversity within TMTs is found to bolster firm performance, underscoring its pivotal role in strategic decision-making and innovation. By offering a comprehensive synthesis of TMT diversity’s connection to financial performance within the Volkswagen Group’s context, this paper contributes novel perspectives. The study emphasizes the methodologies utilized, outlines key findings, and underscores the original contributions made by existing research. This study illuminates the profound influence of TMT diversity on shaping strategic decisions and fostering innovation in the automotive sector. Importantly, it highlights the crucial role of TMT diversity in driving positive financial outcomes.

Top management team diversity impact on financial performance: Evidence from VW Group affiliated firms

Financial Internet Quarterly

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Diversity within top management teams (TMTs) has significant implications for firm financial performance, particularly in dynamic industries like the...

Top management team diversity impact on financial performance: Evidence from VW Group affiliated firms

Published Online: Oct 06, 2023

Page range: 1 - 15

Received: Aug 17, 2023

Accepted: Aug 31, 2023

DOI: https://doi.org/10.2478/fiqf-2023-0015

Keywords
top management teams, financial performance, diversity, automotive industry

© 2023 Emil Velinov, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Top management team diversity impact on financial performance: Evidence from VW Group affiliated firms

Published Online: Oct 06, 2023

Page range: 1 - 15

Received: Aug 17, 2023

Accepted: Aug 31, 2023

DOI: https://doi.org/10.2478/fiqf-2023-0015

Keywordstop management teams, financial performance, diversity, automotive industry

© 2023 Emil Velinov, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
top management teams, financial performance, diversity, automotive industry