Abstract
Chair-CEO age differences have been shown to create cognitive conflicts that lead to greater chair independence in board monitoring that results in superior firm performance (Goergen et al., 2015). We test this argument in a banking setting and investigate whether chair-CEO age difference influences bank risk-taking behaviour. Using a unique sample of the largest 96 listed banks in Europe between 2010 and 2014, we find that a chair-CEO generational gap – defined as a minimum of 20 years age difference – reduces bank risks. Our results are especially prevalent for loan portfolio risks. We do not find chair-CEO differences in gender and past experience to be significant determinants of bank riskiness.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
