Do young CEOs matter for corporate digital transformation?

Abstract

This paper investigates the empirical relation between CEO age and corporate digital transformation. Using a sample of Chinese listed firms between 2007 and 2022, we find that younger CEOs exhibit a higher propensity to engage in digital transformation when compared to older counterparts. We pinpoint two key driving factors behind this phenomenon: CEOs’ motivation to establish a good reputation and their willingness to embrace failure. Furthermore, our heterogeneity tests show that the negative relation between CEO age and digital transformation does not vary with firms’ state ownership, but is more pronounced among firms with fewer financial constraints. Overall, our finding contributes to the growing body of literature examining the role of managerial traits in corporate digital transformation.