Age diversity and firm performance: moderation effect of top management team meeting frequency

This study examines the relationship between board age diversity and firm performance, as well as the moderating role of top-level governance interaction in the Indonesian context. Drawing on Upper Echelons Theory and Resource Dependence Theory, we argue that age-diverse boards may enhance firm performance when supported by effective governance interaction. Using an unbalanced panel dataset of 1,198 firm-year observations from companies listed on the Indonesia Stock Exchange between 2017 and 2021, we employ panel regression analyses to test the proposed relationships. The results indicate that board age diversity is positively but modestly associated with firm performance, as measured by return on assets (ROA) and return on equity (ROE). In contrast, TMT meeting frequency is negative association with ROE, suggesting potential coordination costs associated with excessive meeting intensity. The interaction between age diversity and meeting frequency is positively associated with ROA, indicating that governance interactions may help firm leverage age-diverse perspectives to improve operational efficiency. However, this moderating effect is marginal and not consistently observed across alternative diversity measures. The findings highlight the importance of considering both board demographic characteristics and governance interaction processes when examining firm performance in emerging economies with a two-tier board system.