Upper Echelons Theory in the Banking Sector [entrada em enciclopédia]

Abstract

The Upper Echelons Theory postulates that top manager’s characteristics are determinant for corporate strategic decisions; therefore managerial traits exert influence on the decision process and shape the strategic choices. Considering the banking sector and the determinants of bank’s capital structure, the Upper Echelons perspective contribute to a more comprehensive understanding that managerial traits and perceptions may influence capital structure decisions.