Title: Age matters: investigating the link between CEO tenure and dividend smoothing

Authors: Post Raj Pokharel

Addresses: Otago Business School, University of Otago, Dunedin, New Zealand; Boston International College, Bagmati, Nepal

Abstract: This paper examines the association between CEO age and dividend-smoothing behaviour. Using panel data from Compustat and ExecuComp between 2007 and 2023, the study examines the speed of adjustment as a proxy for dividend smoothing. The findings show that firms with younger CEOs tend to smooth dividends more aggressively than their older counterparts. The study reveals that compensation incentives for young CEOs motivate them to pursue a dividend-smoothing strategy. The impact of young CEOs on dividend smoothing is pronounced in the presence of firm's analyser-type business strategy and the growth phase of the firm's life cycle. The study further documents that dividend smoothing practice reduces the firm's financial distress and mitigates creditors' perceived risk. This study establishes that CEO age is an important determinant of dividend smoothing behaviour. Overall, my findings suggest that CEO age plays a pivotal role in shaping firm policies.

Keywords: chief executive officer; CEO age; dividend smoothing; behaviour; strategy; firm life-cycle.

DOI: 10.1504/IJCG.2026.156174

International Journal of Corporate Governance, 2026 Vol.16 No.3, pp.259 - 289

Received: 17 Jul 2025
Accepted: 02 Apr 2026
Published online: 07 Sep 2026 *

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