The relationship between CEO age and firm performance – evidence from Europe
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School of Business | Bachelor's thesis
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AbstractThis study examines the relationship between CEO age and firm performance using a sample of STOXX Europe 600 companies over the period of 2015-2022. I measure firm performance by Tobin’s Q, ROA and NPM and employ pooled OLS and piecewise linear regressions while controlling for industry and time-specific effects as well as time-invariant and unobservable firm characteristics. I find no evidence of a direct relationship between CEO age and firm performance. However, the results suggest a statistically significant non-linear pattern of performance across different CEO age groups, as measured by Tobin’s Q and ROA. Moreover, the findings remain consistent after testing for robustness. Finally, this study contributes to the broader body of corporate governance literature by illuminating the relationship between CEO characteristics and firm performance in a less-studied European market, using recent data from the late 2010s.
Thesis advisorLuotonen, Niilo
CEO characteristics, CEO age, firm performance, Europe