ABSTRACT
This paper studies the impact of top management team (TMT) age diversity on firm performance during the COVID-19 pandemic. We argue that age-diverse TMTs have a combination of various experiences that lead to creative problem solving and that this creativity supports firms in addressing the unique problems created by COVID-19 (e.g., remote work). Overall, we find that age-diverse TMTs improve firm performance during the COVID-19 pandemic. Further analyses indicate that age diversity is more likely to improve performance for firms subject to significant pandemic pressures (e.g., firms with high physical investment activity). This finding is in contrast to the fact that we find innovative firms do not benefit as much from age diversity, perhaps because these firms were more prepared for the COVID-19 pandemic and therefore required less creative leadership. Finally, we find that firms with inclusive cultures best facilitate the implementation of TMT age diversity.
Data Availability: Data are available from the public sources cited in the text.
JEL Classifications: G30; M41; M14; M12; L25.
