Document Type

Dissertation

Degree

Doctor of Business Administration

Major

Business Administration

Date of Defense

12-16-2020

Graduate Advisor

Dinesh Mirchandani, Ph.D.

Committee

Bindu Arya, Ph.D.

Stephanie Merritt, Ph.D.

Abstract

Prior research has established that leadership characteristics, job equity perception, and client satisfaction are all associated with a firm’s financial performance. This study tested hypotheses about these variables based upon Upper Echelons Theory, Adams Equity Theory, and Stakeholder Theory, in the context of 110 large U.S. law firms. The analysis revealed that (1) the racial diversity of the firm’s management committee is positively associated with the firm’s financial performance; (2) the average employee salary has a positive and U-shaped relationship with the firm’s financial performance; (3) the average employee salary has a positive relationship with the firm’s client satisfaction; (4) client satisfaction has a positive relationship with the firm’s financial performance; and (5) client satisfaction mediates the relationship between the firm’s average employee salary and the firm’s financial performance. These results yield insights for both research and practice.

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