Abstract
Building on spillover, social exchange, and similarity-attraction theories, in this study, I hypothesize that CEO engagement with team sports is positively associated with firm financial performance, and this relationship is further accentuated in innovative industries. CEO engagement with team sports as a non-work activity affects their cognitions and, consequently, their workplace behaviors and leadership styles. The contiguous nature of CEO leadership style at the CEO-TMT interface further cascades throughout the organization and affects both organizational processes and outcomes. This study contributes to the research on upper echelons theory (UET) by explicating the potential outcomes of CEO engagement with team sports as an unexplored phenomenon.
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