Katsiampa, P. orcid.org/0000-0003-0477-6503, McGuinness, P.B. orcid.org/0000-0001-7781-9151 and Zhang, H. (2024) The role of board age diversity in the performance of publicly listed Fintech entities. The European Journal of Finance, 30 (11). pp. 1295-1326. ISSN 1351-847X
Abstract
The present study addresses the important demographic of director age in relation to the performance of the constituent firms of Fintech-focused Exchange Traded Funds (ETFs). While private Fintech boards accommodate generally young officers, regulatory and market forces contribute to notable shifts in the board age composition of seasoned, publicly listed Fintech entities. Within the fast-moving and evolving context of Fintech, we assess how board age composition impacts on such firms’ return-on-assets, sales-on-assets, cash flow proficiencies, and market-to-book value. Our study findings suggest age diversity exhibits a significant inverse relation with the first three of these performance measures. Fintech entities with lower board age dispersion achieve stronger performance in the key metrics. Such a finding holds in cross-sectional terms (i.e. without material change in the average age of board members across the study period). Within our study context, we also assess the age gap between non-executive directors (NEDs) and executive officers (EDs). For most sample firms, average NED age markedly exceeds ED age. Through a battery of tests, we demonstrate more seasoned (i.e. less young) EDs support Fintech firm performance. The presence of more experienced EDs serves in narrowing the age gap with older and more seasoned NEDs.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2023 The Author(s). Except as otherwise noted, this author-accepted version of a journal article published in The European Journal of Finance is made available via the University of Sheffield Research Publications and Copyright Policy under the terms of the Creative Commons Attribution 4.0 International License (CC-BY 4.0), which permits unrestricted use, distribution and reproduction in any medium, provided the original work is properly cited. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ |
Keywords: | Financial technology (Fintech); director age; board age diversity; executive versus non-executive directors; firm financial performance |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 12 Jan 2024 17:44 |
Last Modified: | 01 Nov 2024 16:14 |
Status: | Published |
Publisher: | Informa UK Limited |
Refereed: | Yes |
Identification Number: | 10.1080/1351847x.2023.2287066 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:207577 |
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