Does Age Similarity Between Board Chair and CEO Matter for R&D Investments? Evidence from China

•Age similarity between board chair and CEO matters for R&D investments.•The role of board chair and CEO is important for strategic decision.•Board chair has an important role at the top of firms especially in China.•Firms that are eager to enhance corporate governance and maintain innovation should consider the age gap between the Chair and CEO. Psychology literature suggests that the similarity in age between individuals can influence their communication style, interactions, and information exchange. Given that the relationship between board chairperson (Chair) and Chief Executive Officer (CEO) involves extensive interactions and information-sharing with the aim to maintain shareholders’ interests, this study seeks an answer as to whether age similarity between Chair and CEO affects R&D investment. Using data from A-share Chinese companies, we find that a similarity in age between the Chair and CEO had a negative impact on R&D intensity. Beyond its valuable contribution to the literature, the finding of this study is significant and relevant for practical applications, as it highlights the importance of considering the age gap between the Chair and CEO for companies looking to enhance corporate governance and maintain innovation.