CEO Age and Firm Digital Transformation in China: The Moderating Role of Firm Size

Abstract

This study examines the relationship between CEO age and firm digital trans formation using Chinese listed firms from 2011 to 2022. Drawing on upper echelons, as well as career concern and career horizon perspectives, we identify a robust inverse U-shaped relationship: digital transformation intensity increases with CEO age up to an inflection point at approximately 51.05 years and declines thereafter. Younger CEOs tend to adopt a more cautious approach toward long-term and uncertain digital investments due to career concerns, whereas mid-career CEOs are more actively engaged in digital transformation as a result of accumulated experience, authority and balanced risk incentives. In contrast, as career horizons shorten, older CEOs become increasingly risk-averse. We further find that firm size positively moderates this relationship by enhancing managerial discretion through greater resource availability and implementation capacity. These findings highlight the joint role of executive career stage and organisational context in shaping digital transformation strategies. This study contributes to the literature by demonstrating that CEO age effects are nonlinear, career stage dependent, and context-sensitive, and provides practical insights for aligning executive characteristics with organisational conditions to support digital transformation.