Navigating CEO Characteristics, Strategic Choices and Firm Success

Sutharson Kanapathippillai; Premkanth Puwanenthiren; Thusitha Dissanayake; Steven Dellaportas

doi:10.1111/acfi.70115

Navigating CEO Characteristics, Strategic Choices and Firm Success

Sutharson Kanapathippillai
, Premkanth Puwanenthiren
, Thusitha Dissanayake
, Steven Dellaportas^*

^*Corresponding author for this work

Department of Accounting

Deakin University
University of Westminster

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

Abstract

This 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).

Original language	English
Pages (from-to)	738-759
Number of pages	22
Journal	Accounting and Finance
Volume	66
Issue number	1
Early online date	28 Sept 2025
DOIs	https://doi.org/10.1111/acfi.70115
Publication status	Published - Mar 2026

Keywords

Australian market
business strategy
CEO characteristics
firm performance
mandatory retirement policy

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10.1111/acfi.70115

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abstract = "This 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).",

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AU - Dissanayake, Thusitha

AU - Dellaportas, Steven

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KW - business strategy

KW - CEO characteristics

KW - firm performance

KW - mandatory retirement policy

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Navigating CEO Characteristics, Strategic Choices and Firm Success

Abstract

Keywords

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