According to different research paradigms, the impact of chair-CEO age dissimilarity on corporate decision-making may have a bright side or a dark side. This paper discusses the effect of chair-CEO age dissimilarity on investment efficiency in China. Using the sample of public firms from 2005 to 2019, we find an 'ageing effect' that a normative age gap between the chair and CEO improves firms' investment efficiency by mitigating under-investment. Our finding deepens the understanding of the antecedent and the mechanism of investment efficiency from the micro-perspective of executives' age differences.
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Xiaoyun Yang (2024) studied this question.
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