Managing the diversity: board age diversity, directors’ personal values, and bank performance

This study examines the role of board age diversity on bank performance. Using a sample of 97 Chinese banks, we document a negative and significant relationship between age diversity and bank performance. To further investigate the negative link between age diversity and bank performance, we decompose age diversity into personal value diversities. In particular, a variety of directors’ views with respect to work, prudence, and wealth harm bank performance. This indicates that age diversity among directors can affect bank performance via their values.