'Old is Gold'? Does CEO Age and Chair-CEO Age Similarity Matter? A Longitudinal Evidence on Corporate R&D Investment Intensity

The study focuses on the essential role of managerial characteristics, particularly the age of chief executive officers (CEOs), in influencing firm investment in research and development (R&D). Despite the significant impact that CEO age can have on organizational outcomes, there has been a notable dearth of research investigating this specific aspect in relation to R&D investment within companies over the past 15 years. As such, this study seeks to address this gap in research by examining the impact of elderly CEO, Chair-CEO age similarity and Chair-CEO elderly-age similarity on R&D investment intensity in Chinese publicly listed companies between 2015 and 2020. By analyzing 1,632 firm-year observations using panel corrected standard errors (PCSE) and Hausman-Taylor estimations, the results indicated that both age similarity between Chair-CEOs and having elderly Chair-CEOs positively contribute to higher levels of R&D investment. The implication for practice is that organizations prioritizing long-term R&D efforts are suggested to have Chairs and CEOs who share a similar age and are at an elderly age level, thus promoting better cooperation, understanding and alignment of strategic goals. This age similarity enhances communication, personal connections and mutual trust, leading to increased information exchange, reduced risk aversion and stronger support for R&D initiatives.