No CrossRef data available.
Article contents
Mutual Monitoring: How TMT Faultlines Affect Corporate Fraud
Published online by Cambridge University Press: 17 December 2025
Abstract
We develop and test a theoretical model to investigate the effects of faultlines within the top management team (TMT) on corporate financial fraud. We propose that TMT faultlines can generate mutual monitoring among factional subgroups in the executive suite, which reduces fraudulent behavior. We also examine the contingent roles of subgroup configuration and the TMT members’ tenure overlap in shaping the relationship between TMT faultlines and financial fraud. The mutual monitoring effect is likely to be stronger when the TMT has a balanced subgroup configuration and shorter TMT members’ tenure overlap. We test our argument in the context of publicly listed firms in China. This article extends the mutual monitoring perspective of corporate governance and has important research implications for the corporate financial fraud literature.
摘要
本文建构并检验了高管团队(TMT)内部存在的断裂带对公司财务舞弊行为影响的理论模型。我们提出高管团队内部的断裂带能够促进高管群体内形成派系间的相互监督, 从而降低财务舞弊的发生。我们进一步研究了高管团队内部存在的小群体构成和其成员任期重叠程度在断裂带和财务舞弊关系中的调节作用。当高管团队具有更加平衡的子群体构成以及更短的成员任期重叠时, 这种相互监督的作用会更加明显。我们使用中国上市公司的数据对上述观点进行了实证检验。本研究拓展了公司治理中的相互监督理论视角, 并对公司财务舞弊相关文献具有重要的研究启示。
Information
- Type
- Article
- Information
- Copyright
- © The Author(s), 2025. Published by Cambridge University Press on behalf of International Association for Chinese Management Research.
References
Aguilera, R. V., & Jackson, G. 2003. The cross-national diversity of corporate governance: Dimensions and determinants. Academy of Management Review, 28(3): 447–465.CrossRefGoogle Scholar
Antino, M., Rico, R., & Thatcher, S. M. 2019. Structuring reality through the faultlines lens: The effects of structure, fairness, and status conflict on the activated faultlines–performance relationship. Academy of Management Journal, 62(5): 1444–1470. https://doi.org/10.5465/amj.2017.0054CrossRefGoogle Scholar
Arnold, M. C., Hannan, R. L., & Tafkov, I. D. 2020. Mutual monitoring and team member communication in teams. Accounting Review, 95(5): 1–21.10.2308/accr-52659CrossRefGoogle Scholar
Ashforth, B. E., & Mael, F. 1989. Social identity theory and the organization. Academy of Management Review, 14(1):20–39.10.2307/258189CrossRefGoogle Scholar
Barkema, H. G., & Shvyrkov, O. 2007. Does top management team diversity promote or hamper foreign expansion? Strategic Management Journal, 28(7): 663–680.CrossRefGoogle Scholar
Beckman, C. M., & Burton, M. D. 2011. Bringing organizational demography back in: Time, change and structure in top management team research. In Carpenter, M. A. (Ed.), Handbook of top management team research: 49–70. Cheltenham, UK: Edward Elgar.CrossRefGoogle Scholar
Berle, A. A., & Means, G. C. 1932. The modern corporation and private property. New Brunswick, NJ: Transaction.Google Scholar
Bezrukova, K., Jehn, K. A., Zanutto, E. L., & Thatcher, S. M. 2009. Do workgroup faultlines help or hurt? A moderated model of faultlines, team identification, and group performance. Organization Science, 20(1): 35–50. https://doi.org/10.1287/orsc.1080.0379CrossRefGoogle Scholar
Bezrukova, K., Spell, C. S., Caldwell, D., & Burger, J. M. 2016. A multilevel perspective on faultlines: Differentiating the effects between group- and organizational-level faultlines. Journal of Applied Psychology, 101(1): 86–107.10.1037/apl0000039CrossRefGoogle ScholarPubMed
Busenbark, J. R., Yoon, H., Gamache, D. L., & Withers, M. C. 2022. Omitted variable bias: Examining management research with the impact threshold of a confounding variable (ITCV). Journal of Management, 48(1): 17–48.CrossRefGoogle Scholar
Buyl, T., Boone, C., Hendriks, W., & Matthyssens, P. 2010. Top management team functional diversity and firm performance: The moderating role of CEO characteristics. Journal of Management Studies, 48(1): 151–177.CrossRefGoogle Scholar
Carcello, J. V., & Nagy, A. L. 2004. Client size, auditor specialization and fraudulent financial reporting. Managerial Auditing Journal, 19(5): 651–668.10.1108/02686900410537775CrossRefGoogle Scholar
Carpenter, J. P. 2007. Punishing free-riders: How group size affects mutual monitoring and the provision of public goods. Games and Economic Behavior, 60(1): 31–51.10.1016/j.geb.2006.08.011CrossRefGoogle Scholar
Carpenter, M. A., Geletkanycz, M. A., & Sanders, W. G. 2004. Upper echelons research revisited: Antecedents, elements, and consequences of top management team composition. Journal of Management, 30(6): 749–778.CrossRefGoogle Scholar
Carroll, G. R., & Harrison, J. R. 1998. Organizational demography and culture: Insights from a formal model and simulation. Administrative Science Quarterly, 43(3): 637–767.CrossRefGoogle Scholar
Carton, A. M., & Cummings, J. N. 2012. A theory of subgroups in work teams. Academy of Management Review, 37(3): 441–470.10.5465/amr.2009.0322CrossRefGoogle Scholar
Carton, A. M., & Cummings, J. N. 2013. The impact of subgroup type and subgroup configurational properties on work team performance. Journal of Applied Psychology, 98(5): 732–758.10.1037/a0033593CrossRefGoogle ScholarPubMed
Certo, S. T., Lester, R. H., Dalton, M., & Dalton, D. R. 2006. Top management teams, strategy and financial performance: A meta-analytic examination. Journal of Management Studies, 43(4): 813–839.10.1111/j.1467-6486.2006.00612.xCrossRefGoogle Scholar
Chatman, J. A., & Flynn, F. J. 2001. The influence of demographic heterogeneity on the emergence and consequences of cooperative norms in work teams. Academy of Management Journal, 44(5): 956–974CrossRefGoogle Scholar
Chen, L., Yang, B., & Jing, R. 2015. Paternalistic leadership, team conflict, and tmt decision effectiveness: Interactions in the Chinese context. Management and Organization Review, 11(4): 739–762.CrossRefGoogle Scholar
Chen, S., Wang, D., Zhou, Y., Chen, Z., & Wu, D. 2017. When too little or too much hurts: Evidence for a curvilinear relationship between team faultlines and performance. Asia Pacific Journal of Management, 34(4): 931–950.10.1007/s10490-017-9510-7CrossRefGoogle Scholar
Choi, J. N., & Sy, T. 2010. Group-level organizational citizenship behavior: Effects of demographic faultlines and conflict in small work groups. Journal of Organization Behavior, 31(7): 1032–1054.10.1002/job.661CrossRefGoogle Scholar
Coles, J. L., Daniel, N. D., & Naveen, L. 2008. Boards: Does one size fit all? Journal of Financial Economics, 87(2): 329–356.10.1016/j.jfineco.2006.08.008CrossRefGoogle Scholar
Conyon, M. J., & He, L. 2016. Executive compensation and corporate fraud in China. Journal of Business Ethics, 134(4): 669–691.CrossRefGoogle Scholar
Cooper, D., Patel, P. C., & Thatcher, S. M. B. 2014. It depends: Environmental context and the effects of faultlines on top management team performance. Organization Science, 25(2): 633–652.10.1287/orsc.2013.0855CrossRefGoogle Scholar
Cramton, C. D., & Hinds, P. J. 2004. Subgroup dynamics in internationally distributed teams: Ethnocentrism or cross-national learning. Research in Organizational Behavior, 26: 231–263.10.1016/S0191-3085(04)26006-3CrossRefGoogle Scholar
Cromme, G. 2005. Corporate governance in Germany and the German corporate governance code. Corporate Governance: An International Review, 13(3): 362–367.10.1111/j.1467-8683.2005.00430.xCrossRefGoogle Scholar
Cronin, M. A., Bezrukova, K., Weingart, L. R., & Tinsley, C. H. 2011. Subgroups within a team: The role of cognitive and affective integration. Journal of Organizational Behavior, 32(6): 831–849.10.1002/job.707CrossRefGoogle Scholar
Crucke, S., & Knockaert, M. 2016. When stakeholder representation leads to faultlines: A study of board service performance in social enterprises. Journal of Management Studies, 53(5): 768–793.CrossRefGoogle Scholar
Cumming, J. N. 2004. Work groups, structural diversity, and knowledge sharing in a global organization. Management Science, 50(3): 352–364.10.1287/mnsc.1030.0134CrossRefGoogle Scholar
Daily, C. M., Dalton, D. R., & Canella, A. A. 2003. Corporate governance: Decades of dialog and data. Academy of Management Review, 28(3): 371–398.10.2307/30040727CrossRefGoogle Scholar
David, P., Kochhar, P., & Levitas, E. 1998. The effect of institutional investors on the level and mix of CEO compensation. Academy of Management Journal, 41(2): 200–208.CrossRefGoogle Scholar
Davis, J., Schoorman, F. D., & Donaldson, L. 1997. Toward a stewardship theory of management. Academy of Management Review, 22(1): 20–47.CrossRefGoogle Scholar
Eisenhardt, K. M., Kahwajy, J. L., & Bourgeois, L. J. 1997. Conflict and strategic choice: How top management teams disagree. California Management Review, 39(2): 42–62.CrossRefGoogle Scholar
Fama, E. F., & Jensen, M. C. 1983. Separation of ownership and control. Journal of Law and Economics, 26(2): 301–325.10.1086/467037CrossRefGoogle Scholar
Filatotchev, I., Jackson, G., & Nakajima, C. 2013. Corporate governance and national institutions: A review and emerging research agenda. Asia Pacific Journal of Management, 30(4): 965–986.CrossRefGoogle Scholar
Finnerty, J. D., Hegde, S., & Malone, C. B. 2016. Fraud and firm performance: Keeping the good times (apparently) rolling. Managerial Finance, 42(2): 151–172.10.1108/MF-01-2015-0009CrossRefGoogle Scholar
Firth, D. 1993. Bias reduction of maximum likelihood estimates. Biometrika, 80(1): 27–38.CrossRefGoogle Scholar
Fox, M. A., & Hamilton, R. T. 1994. Ownership and diversification: Agency theory or stewardship theory. Journal of Management Studies, 31(1): 69–81.10.1111/j.1467-6486.1994.tb00333.xCrossRefGoogle Scholar
Gande, A., & Lewis, C. M. 2009. Shareholder-initiated class action lawsuits: Shareholder wealth effects and industry spillovers. Journal of Financial and Quantitative Analysis, 44(4): 823–850.10.1017/S0022109009990202CrossRefGoogle Scholar
Gao, L., Jiang, C. X., & Mekhaimer, M. 2023. Count on subordinate executives: Internal governance and innovation. Journal of Banking & Finance, 154: 106931.10.1016/j.jbankfin.2023.106931CrossRefGoogle Scholar
Georgakakis, D., Greve, P., & Ruigrok, W. 2017. Top management team faultlines and firm performance: Examining the CEO–TMT interface. The Leadership Quarterly, 28(6): 741–758.CrossRefGoogle Scholar
Gibson, C. B., & Vermeulen, F. 2003. A healthy divide: Subgroups as a stimulus for team learning behavior. Administrative Science Quarterly, 48(2): 202–239.CrossRefGoogle Scholar
Gong, K., Odom, D., & Kim, T. 2025. Institutional origin and Chinese family firms’ dot tax haven internationalization. Management and Organization Review, 21(2): 225–249.CrossRefGoogle Scholar
Greening, D. W., & Johnson, R. A. 1997. Managing industrial and environmental rises the role of heterogeneous top management teams. Business & Society, 36(4): 334–361.CrossRefGoogle Scholar
Guo, Y., Luo, X. R., & Li, D. 2022. Hierarchical inconsistency: A monitoring mechanism to reduce securities fraud in emerging markets. Organization Science, 33(6): 2187–2208.10.1287/orsc.2021.1541CrossRefGoogle Scholar
Halevy, N. 2008. Team negotiation: Social, epistemic, economic, and psychological consequences of subgroup conflict. Personality and Social Psychology Bulletin, 34(12): 1687–1702.CrossRefGoogle ScholarPubMed
Hambrick, D. C. 2007. Upper echelons theory: An update. Academy of Management Review, 32(2): 334–343.10.5465/amr.2007.24345254CrossRefGoogle Scholar
Hambrick, D. C., & Mason, P. A. 1984. Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9(2): 193–206.CrossRefGoogle Scholar
Hambrick, D. C., Humphrey, S. E., & Gupta, A. 2015. Structural interdependence within top management teams: A key moderator of upper echelons predictions. Strategic Management Journal, 36(3): 449–461.10.1002/smj.2230CrossRefGoogle Scholar
Harris, C. M., McMahan, G. C., & Wright, P. M. 2012. Talent and time together: The impact of human capital and overlapping tenure on unit performance. Personnel Review, 41(4): 408–427.10.1108/00483481211229357CrossRefGoogle Scholar
Harris, J., & Bromiley, P. 2007. Incentives to cheat: The influence of executive compensation and firm performance on financial misrepresentation. Organization Science, 18(3): 350–367.10.1287/orsc.1060.0241CrossRefGoogle Scholar
Harrison, D. A., Price, K. H., & Bell, M. P. 1998. Beyond relational demography: Time and the effects of surface- and deep-level diversity on work group cohesion. Academy of Management Journal, 41(1): 96–107.10.2307/256901CrossRefGoogle Scholar
Harrison, D. A., Price, K. H., Gavin, J. H., & Florey, A. T. 2002. Time, teams, and task performance: Changing effects of surface- and deep-level diversity on group functioning. Academy of Management Journal, 45(5): 1029–1045.CrossRefGoogle Scholar
Hogg, M. A., van Knippenberg, D., & Rast, D. E. 2012. Intergroup leadership in organizations: Leading across group and organizational boundaries. Academy of Management Review, 37(2): 232–255.10.5465/amr.2010.0221CrossRefGoogle Scholar
Horak, S., Afiouni, F., Bian, Y., Ledeneva, A., Muratbekova-Touron, M., & Fey, C. F. 2020. Informal networks: Dark sides, bright sides, and unexplored dimensions. Management and Organization Review, 16(3): 511–542.CrossRefGoogle Scholar
Jackson, S. E. 1992. Team composition in organizational settings: issues in managing an increasingly diverse workforce. In S., Worchel W., Wood & J. A., Simpson (Eds.), Group process and productivity. Newbury Park, MA: Sage.Google Scholar
Janis, I. L. 1972. Victims of groupthink: A psychological study of foreign-policy decisions and fiascoes. Boston: Houghton Mifflin.Google Scholar
Jehn, K. A., Northcraft, G. B., & Neale, M. A. 1999. Why differences make a difference: A field study of diversity, conflict and performance in workgroups. Administrative Science Quarterly, 44(4): 741–763.10.2307/2667054CrossRefGoogle Scholar
Jensen, M. C., & Meckling, W. H. 1976. Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3(4): 305–360.10.1016/0304-405X(76)90026-XCrossRefGoogle Scholar
Jia, C., Ding, S., Li, Y., & Wu, Z. 2009. Fraud, enforcement action, and the role of corporate governance: Evidence from China. Journal of Business Ethics, 90(4): 561–576.10.1007/s10551-009-0061-9CrossRefGoogle Scholar
Jones, C., Hesterly, W. S., & Borgatti, S. P. 1997. A general theory of network governance: Exchange conditions and social mechanisms. Academy of Management Review, 22(4): 911–945.10.2307/259249CrossRefGoogle Scholar
Joseph, J., Ocasio, W., & McDonnell, M. 2014. The structural elaboration of board Independence: Executive power, institutional logics, and the adoption of CEO-only board structures in US corporate governance. Academy of Management Journal, 57(6): 1834–1858.CrossRefGoogle Scholar
Kalra, K., & Szymanski, M. 2023. Alike yet distinct: The effect of language diversity on interpersonal relationships within national and multinational project teams. Management and Organization Review, 19(4): 627–654.10.1017/mor.2023.4CrossRefGoogle Scholar
Khanna, V., Kim, E. H., & Lu, Y. 2015. CEO connectedness and corporate frauds. Journal of Finance, 70(3): 1203–1252.10.1111/jofi.12243CrossRefGoogle Scholar
Kilduff, G. J., Elfenbein, H. A., & Staw, B. M. 2010. The psychology of rivalry: A relationally dependent analysis of competition. Academy of Management Journal, 53(5): 943–969.CrossRefGoogle Scholar
Knight, D., Pearce, C. L., Smith, K. G., Olian, J. D., Sims, H. P., Smith, K. A., & Flood, P. 1999. Top management team diversity, group process, and strategic consensus. Strategic Management Journal, 20(5): 445–465.3.0.CO;2-V>CrossRefGoogle Scholar
Krause, R., Roh, J., & Whitler, K. A. 2022. The top management team: Conceptualization, operationalization, and a roadmap for scholarship. Journal of Management, 48(6): 1548–1601.10.1177/01492063211072459CrossRefGoogle Scholar
Lau, D. C., & Murnighan, J. K. 1998. Demographic diversity and faultlines: The compositional dynamics of organizational groups. Academy of Management Review, 23(2): 325–340.10.2307/259377CrossRefGoogle Scholar
Lau, D. C., & Murnighan, J. K. 2005. Interactions within groups and subgroups: The effects of demographic faultlines. Academy of Management Journal, 48(4): 645–659.10.5465/amj.2005.17843943CrossRefGoogle Scholar
Li, J., & Hambrick, D. C. 2005. Factional groups: A new vantage of demographic faultlines, conflict, and disintegration in work teams. Academy of Management Journal, 48(5): 794–813.10.5465/amj.2005.18803923CrossRefGoogle Scholar
Li, M., & Jones, C. D. 2019. The effects of TMT faultlines and CEO–TMT power disparity on competitive behavior and firm performance. Group & Organization Management, 44(5): 874–914.CrossRefGoogle Scholar
Li, M., Zheng, X., & Zhuang, G. 2017. Information technology-enabled interactions, mutual monitoring, and supplier-buyer cooperation: A network perspective. Journal of Business Research, 78: 268–278.10.1016/j.jbusres.2016.12.022CrossRefGoogle Scholar
Li, Y., & Cui, L. 2018. The influence of top management team on Chinese firms’ FDI ambidexterity. Management and Organization Review, 14(3): 513–542.10.1017/mor.2017.47CrossRefGoogle Scholar
Li, Z. 2014. Mutual monitoring and corporate governance. Journal of Banking & Finance, 45: 255–269.Google Scholar
Liu, Y. E., Zhu, Z., Wei, Y., & Wu, L. 2025. A double-edged sword: The two faces of political connections in international investments of Chinese firms. Management and Organization Review, 1–22. https://doi.org/10.1017/mor.2024.48Google Scholar
Lopez, L., & Weber, S. 2017. Testing for granger causality in panel data. The Stata Journal, 17(4): 972–984.10.1177/1536867X1801700412CrossRefGoogle Scholar
Ma, S., Kor, Y. Y., & Seidl, D. 2022. Top management team role structure: A vantage point for advancing upper echelons research. Strategic Management Journal, 43(8): 1–28.10.1002/smj.3368CrossRefGoogle Scholar
Martin, G. P., Wiseman, R. M., & Gomez-Mejia, L. R. 2019. The interactive effect of monitoring and incentive alignment on agency costs. Journal of Management, 45(2): 701–727.CrossRefGoogle Scholar
Mäs, M., Flache, A., Takács, K., & Jehn, K. A. 2013. In the short term we divide, in the long term we unite: Demographic crisscrossing and the effects of faultlines on subgroup polarization. Organization Science, 24(3): 716–736.10.1287/orsc.1120.0767CrossRefGoogle Scholar
Mathieu, J. E., Heffner, T. S., Goodwin, G. F., Salas, E., & Cannon-Bowers, J. A. 2000. The influence of shared mental models on team process and performance. Journal of Applied Psychology, 85(2): 273–283. https://doi.org/10.1037/0021-9010.85.2.273CrossRefGoogle Scholar
Mathieu, J., Maynard, M. T., Rapp, T., & Gilson, L. 2008. Team effectiveness 1997–2007: A review of recent advancements and a glimpse into the future. Journal of Management, 34: 410–476.10.1177/0149206308316061CrossRefGoogle Scholar
Menon, T., & Phillips, K. W. 2011. Getting even or being at odds? Cohesion in even- and odd-sized small groups. Organization Science, 22(3): 738–753.10.1287/orsc.1100.0535CrossRefGoogle Scholar
Meyer, B., & Glenz, A. 2013. Team faultline measures: A computational comparison and a new approach to multiple subgroups. Organizational Research Methods, 16(3): 393–424.10.1177/1094428113484970CrossRefGoogle Scholar
Meyer, B., Glenz, A., Antino, M., Rico, R., & González-Romá, V. 2014. Faultlines and subgroups: A meta-review and measurement guide. Small Group Research, 45(6): 633–670.10.1177/1046496414552195CrossRefGoogle Scholar
Mo, S., Ling, C., & Xie, X. 2019. The curvilinear relationship between ethical leadership and team creativity: The moderating role of team faultlines. Journal of Business Ethics, 154(1): 229–242. https://doi.org/10.1007/s10551-016-3430-1CrossRefGoogle Scholar
Nahapiet, J., & Ghoshal, S. 1998. Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23(2): 242–266.10.2307/259373CrossRefGoogle Scholar
Ndofor, H. A., Wesley, C., & Priem, R. L. 2015. Providing CEOs with opportunities to cheat the effects of complexity-based information asymmetries on financial reporting fraud. Journal of Management, 41(6): 1774–1797.CrossRefGoogle Scholar
Neville, F., Byron, K., Post, C., & Ward, A. 2019. Board independence and corporate misconduct: A cross-national meta-analysis. Journal of Management, 45(6): 2538–2569.10.1177/0149206318801999CrossRefGoogle Scholar
Ocasio, W. 1994. Political dynamics and the circulation of power: CEO succession in U.S. industrial corporations, 1960–1990. Administrative Science Quarterly, 39(2): 285–312.10.2307/2393237CrossRefGoogle Scholar
O’Leary, M. B., & Mortensen, M. 2010. Go (con)figure: Subgroups, imbalance, and isolates in geographically dispersed teams. Organization Science, 21(1): 115–131.10.1287/orsc.1090.0434CrossRefGoogle Scholar
Qi, M., Armstrong, S. J., Yang, Z., & Li, X. 2022. Cognitive diversity and team creativity: Effects of demographic faultlines, subgroup imbalance and information elaboration. Journal of Business Research, 139: 819–830.10.1016/j.jbusres.2021.10.027CrossRefGoogle Scholar
Qian, C., Wang, H., Geng, X., & Yu, Y. 2017. Rent appropriation of knowledge-based assets and firm performance when institutions are weak: A study of Chinese publicly listed firms. Strategic Management Journal, 38(4): 813–991.CrossRefGoogle Scholar
Radwan, A., Tian, G., Garefalakis, A., Koutoupis, A., & Kyriakogkonas, P. 2022. Does independent director’s cash compensation matter? Evidence from corporate fraud. Journal of Business Economics and Management, 23(4): 977–996.10.3846/jbem.2022.16217CrossRefGoogle Scholar
Rediker, K. J., & Seth, A. 1995. Boards of directors and substitution effects of alternative governance mechanisms. Strategic Management Journal, 16(2): 85–99.10.1002/smj.4250160202CrossRefGoogle Scholar
Richard, O. C., Wu, J., Markoczy, L. A., & Chung, Y. 2019. Top management team demographic-faultline strength and strategic change: What role does environmental dynamism play? Strategic Management Journal, 40(6): 987–1009.10.1002/smj.3009CrossRefGoogle Scholar
Rico, R., Molleman, E., Sánchez-Manzanares, M., & Van der Vegt, G. S. 2007. The effects of diversity faultlines and team task autonomy on decision quality and social integration. Journal of Management, 33(1): 111–132. https://doi.org/10.1177/0149206306295307CrossRefGoogle Scholar
Schnatterly, K., Gangloff, K. A., & Tuschke, A. 2018. CEO Wrongdoing: A review of pressure, opportunity, and rationalization. Journal of Management, 44(6): 2405–2432.CrossRefGoogle Scholar
Shen, W., & Cannella, A. A., Jr. 2002. Power dynamics within top management and their impacts on CEO dismissal followed by inside succession. Academy of Management Journal, 45(6): 1195–1206.10.2307/3069434CrossRefGoogle Scholar
Shi, W., Connelly, B. L., & Hoskisson, R. E. 2017. External corporate governance and financial fraud: Cognitive evaluation theory insights on agency theory prescriptions. Strategic Management Journal, 38(6): 1268–1286.10.1002/smj.2560CrossRefGoogle Scholar
Spell, C. S., Bezrukova, K., Haar, J., & Spell, C. 2011. Faultlines, fairness, and fighting: A justice perspective on conflict in diverse groups. Small Group Research, 42(3): 309–340.10.1177/1046496411402359CrossRefGoogle Scholar
Stanley, B., & Vikram, I. S. 2011. To cheat or not to cheat: How bank debt influences the decision to misreport. Journal of Accounting, Auditing & Finance, 26(2): 383–414.10.1177/0148558X11401221CrossRefGoogle Scholar
Steinbach, A. L., Holcomb, T. R., Holmes, R. M., Jr, Devers, C. E., & Cannella, A. A., Jr. 2017. Top management team incentive heterogeneity, strategic investment behavior, and performance: A contingency theory of incentive alignment. Strategic Management Journal, 38(8): 1701–1720.10.1002/smj.2628CrossRefGoogle Scholar
Tajfel, H. (Ed.). 1978. Differentiation between social groups: Studies in the social psychology of intergroup relations. London, UK: Academic Press.Google Scholar
Taylor, A., & Greve, H. 2006. Superman or the fantastic four? Knowledge combination and experience in innovative teams. Academy of Management Journal, 49(4): 723–740.10.5465/amj.2006.22083029CrossRefGoogle Scholar
Thatcher, S. M. B., Jehn, K. A., & Zanutto, E. 2003. Cracks in diversity research: The effects of diversity faultlines on conflict and performance. Group Decision and Negotiation, 12(3): 217–241.10.1023/A:1023325406946CrossRefGoogle Scholar
Thatcher, S. M. B., & Patel, P. C. 2012. Group faultlines: A review, integration, and guide to future research. Journal of Management, 38(4): 969–1009.10.1177/0149206311426187CrossRefGoogle Scholar
Tihanyi, L., Johnson, R., Hoskisson, R., & Hitt, M. 2003. Institutional ownership differences and international diversification: The effects of boards of directors and technological opportunity. Academy of Management Journal, 46(2):195–211.10.2307/30040614CrossRefGoogle Scholar
Troy, C., Smith, K. G., & Domino, M. A. 2011. CEO demographics and accounting fraud: Who is more likely to rationalize illegal acts? Strategic Organization, 9(4): 259–282.10.1177/1476127011421534CrossRefGoogle Scholar
Turner, J. C. 1982. Toward a cognitive definition of the group. Cambridge: Cambridge University Press.Google Scholar
Turner, J. C. 1985. Social categorization and the self-concept: A social cognitive theory of group behavior. Advances in Group Process, 2: 77–121.Google Scholar
Van Knippenberg, D., De Dreu, C. K. W., & Homan, A. C. 2004. Work group diversity and group performance: An integrative model and research agenda. Journal of Applied Psychology, 89(6): 1008–1022.10.1037/0021-9010.89.6.1008CrossRefGoogle ScholarPubMed
Van Knippenberg, D., Dawson, J. F., West, M. A., & Homan, A. C. 2011. Diversity faultlines, shared objectives, and top management team performance. Human Relations, 64(3): 307–336.10.1177/0018726710378384CrossRefGoogle Scholar
Wang, Z., Wang, C., & Fang, Z. 2023. Common institutional ownership and corporate misconduct. Managerial & Decision Economics, 44(1): 102–136.10.1002/mde.3669CrossRefGoogle Scholar
Welbourne, T. M., Balkin, D. B., & Gomez-Mejia, L. R. 1995. Gain sharing and mutual monitoring: A combined agency-organizational justice interpretation. Academy of Management Journal, 38(3): 881–899.10.2307/256750CrossRefGoogle Scholar
White, H. 1980. A heteroskedasticity-consistent covariance matrix estimator and a direct test for heteroskedasticity. Econometrica: Journal of the Econometric Society, 48(4): 817–838.10.2307/1912934CrossRefGoogle Scholar
Williams, K. Y., & O’Reilly, C. A. 1998. Demography and diversity in organizations: A review of 40 years of research. Staw, B. M. & Cummings, L. L. (Eds.), Research in organizational behavior, vol 20: 77–140. Greenwich, CT: JAI Press.Google Scholar
Xing, J., Zhang, Y., Xiong, X., & Li, G. 2022. Covering or monitoring? Independent director connectedness and corporate fraud in China. China Journal of Accounting Research, 15(4): 100273.10.1016/j.cjar.2022.100273CrossRefGoogle Scholar
Xue, S., Tang, Y., Xu, Y., Ling, C. D., Xie, X. Y., & Mo, S. 2024. How boards’ factional faultlines affect corporate finnancial fraud. Asia Pacific Journal of Management, 41(1): 351–376.CrossRefGoogle Scholar
Yiu, D. W., Wan, W. P., & Xu, Y. 2019. Alternative governance and corporate financial fraud in transition economies: Evidence from China. Journal of Management, 45(7): 2685–2720.10.1177/0149206318764296CrossRefGoogle Scholar
Zhang, Y., & Chen, H. 2023. How surface-level and deep-level faultlines influence team performance through subgroup formation and team interaction quality: A meta-analytic review. Management and Organization Review, 9(5):876–909.10.1017/mor.2023.13CrossRefGoogle Scholar
Zhang, Y., Ayoko, O. B., & Liang, Q. 2021. The joint influence of CEO succession types and CEO–TMT faultline on firm’s strategic change. Journal of Business Research, 126: 137–152.10.1016/j.jbusres.2020.12.055CrossRefGoogle Scholar
Zorn, M. L., Shrophshire, C., Martin, J. A., Combs, J. G., & Ketchen, D. J., Jr. 2017. Home alone: The effects of lone-insider boards on CEO pay, financial misconduct, and firm performance. Strategic Management Journal, 38(13): 2623–2646.10.1002/smj.2661CrossRefGoogle Scholar