Navigating CEO Characteristics, Strategic Choices and Firm Success

ABSTRACTThis study explores the relationship between the CEOs' demographic characteristics (age, tenure and professional qualification) and business strategy (prospector vs. defender) development. Using evidence from a sample of 4826 Australian firm‐year observations, the findings suggest that CEO age and tenure are negatively associated with the prospector business strategy, while CEO education is positively associated with the prospector business strategy. Further analysis suggests that CEO age negatively impacts firm performance. The results are robust based on firm‐fixed effects, propensity score matching and lagged CEO demographic characteristics. Policymakers in Australia could consider introducing CEO Mandatory Retirement Policies (MRPs).<p></p>