This study examines the impact of Chief Executive Officer's (CEO's) age on investment‐cash flow sensitivity (ICFS) for Indian firms from 2005 to 2018. Using system generalized method of moments (GMM), this study finds that young (older) CEOs increase (reduce) ICFS. This study finds that the effects of CEO's age on ICFS become more (less) stronger for standalone (group‐affiliated) firms and during crisis (noncrisis) periods. Further, the individual effect of older (young) CEOs is negatively (positively) associated with the corporate investment, and this effect is not significant for standalone firms and during the crisis period. Overall, this study adds new insights to the existing finance literature.
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Gaurav Gupta (2022) studied this question.