| Abstract:This thesis take the nature age as the research object, On the basis of the previous literature and theory. People with different ages have different risk-decision preferences. Focus on the correlation of CEO age and the corporate decisions.Firstly, based on theory research and mechanism analysis, From the perspective of the biology and psychology to analyze age affect Physical and mental and behavior decision-making. Under the framework of Behavioral Corporate Finance Theory, Managers’personal characteristics and age affect CEO behavior decision-making. Figure out the path of CEO age affect the Corporate policies. Because of CEO of different ages have different born background、experience、values and so on, All of this differences have cause the different Corporate decisions preferences.Take2007～2012A-share listed company’s chairman as CEO as samples. According to the latest World Health Organization classify age segment of the population, have classified three segements, namely, under44age for young,45～59age for middle,over60for old CEOs. Through a simple empirical findings, CEO age and the company’s stock return volatility are negatively related.If CEOs are to affect firm risk, they must do so through channels that they have control over. Two of these channels are choices in the riskiness of investment and financial policies.this thesis selected three indicators R&D、 operating leverage、over-investment represent its corporate development risk, operational risk, investment risk. We use multiple linear regression method to examine Our country listed company CEO age influence on its risk of corporate policies.We find that:(1) On development risk, CEO of different ages on their companies in R&D investment will be distinctly different, Older CEO who invest less in R&D;(2)On operational risk, CEO age and the company’s operating leverage is a significant negative correlation. Older CEO maintain lower operating leverage;(3)On investment risk, CEO age and the degree of excessive investment company is a significant negative correlation. Young CEOs have more aggressive investment,more optimistic about the future, over investment was significantly higher than that of other age groups of the CEO.All the research conclusion illustrate,CEO age and the risk decision of corporate is a significant negative correlation.Older CEOs of the corporate take more cautious and conservative bias in risk preference. Overall, my results imply that a CEO’s age can have a significant impact on risk-taking behavior. |
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