CEO Reputation Research Articles

Resource or Burden? CEO Reputation and Corporate Diversification

Resource or Burden? CEO Reputation and Corporate Diversification

The relationship between CEO's reputation and firm abnormal earnings - evidence from Vietnam

The relationship between CEO's reputation and firm abnormal earnings - evidence from Vietnam

A good name is rather to be chosen: The impact of CEO reputation incentives on corporate green innovation

AbstractIn contrast to studies examining the effects of government incentives such as environmental regulation on corporate green innovation, this paper investigates the influence of CEO reputation, a market‐based incentive mechanism, on companies' green innovation behavior. Utilizing green patent data from Chinese A‐share listed companies from 2007 to 2020, we construct a CEO reputation index through principal component analysis and examine its impact on corporate green innovation behavior and underlying mechanisms. Our findings indicate that CEO reputation positively affects companies' green innovation behavior. This effect is primarily driven by reducing financing constraints, CEOs' risk perception, and rising environmental awareness. Further heterogeneity analysis reveals the positive relationship between CEO reputation and green innovation behavior is more pronounced in companies with strong executive compensation incentives, political connections, and effective internal control.

CEO reputation and shareholder voting

This paper examines the influence of CEO reputation on corporate proxy voting. Relying on prestigious business awards (through which the CEO is elevated to superstar status) as salient shocks to CEO reputation, we find that shareholders in aggregate, and mutual funds in particular, are more likely to vote with management (i.e., against shareholder proposals) when the CEO is a superstar. We use a battery of matching procedures to mitigate the concern that these results are driven by selection. We further show that shareholder proposals, especially contested ones and those with positive ISS recommendations, are significantly more likely to fail when the CEO is a superstar. Our results suggest that investors are sensitive to the external appraisal conveyed by the superstar status and prefer not to oppose management.

The Impact of Top Management Education from Reputable Universities on Corporate Capital Structure: Evidence from Indonesia

This article aims to analyse the relationship between the chief executive and financial officer (CEO and CFO) from reputable universities and capital structure. We use least-square regression using 3,003 firm-year observations of companies listed in Indonesia from all industries except the financial sector from 2010 to 2019. Consistent with the hypothesis development, the results show that CEOs and CFO from reputable universities have a significant positive relation to the debt-equity ratio. The same result is also shown in the robust test using coarsened exact matching (CEM) and Heckman’s two-stage model. We also document that in a high-growth industry, CEO reputation plays an important effect on capital structure, meanwhile in a low growth industry, CFO does. Interestingly, only the company who has low-tech industry shows a significant education reputation on capital structure. We also separate the sample using education levels, undergraduate and postgraduate. These findings will interest policymakers and companies when recruiting top managers to consider their educational background because it influences capital structure decisions. This study provides a theoretical contribution to the literature on the relationship between top management educational background and capital structure in Indonesia.

Do CEOs’ social networks affect carbon emissions in China? The moderating role of CEO reputation

Today, it is critical for business and society to manage local and global environmental changes that are degrading every dimension of life. However, there is little evidence on how corporate governance affects firms’ carbon performance from the perspective of CEOs’ social networks. We show that firms with better-networked CEOs have better carbon performance. Our empirical evidence verifies that close social networks between CEOs and TMTs (top management teams) may enhance resource provision rather than aggravate agency problems. Second, we find that CEOs who have received negative media coverage will ensure substantial corporate sustainability practices. Moreover, CEOs will learn carbon knowledge through social networks when firms are in regions with high carbon emissions. These empirical results provide important implications for regulators and managers to improve corporate carbon performance.

Staging or real commitment? CEO reputation management as a moderator of the influence of firm size on corporate social responsibility performance and controversies

The increasing importance of corporate social responsibility over recent decades has led research on its drivers to grow exponentially. However, the mystery of different levels of commitment despite comparable firm characteristics related to size, such as financial resources and similar external pressures, has still not been completely unravelled. Given that corporate engagement in social responsibility is not only shaped by firm characteristics but also – and even especially – by the preferences and motivations of its leaders, this study explores how CEOs' reputational ambitions moderate the relationship between firm size and corporate social responsibility. We argue that CEOs who actively manage their reputation are more aware of the reputation-enhancing potential of corporate social responsibility. We test our ideas with a cross-sectional sample of 128 listed companies from seven Western European countries, operationalising CEOs' reputation management with a novel measure based on their self-presentation and posting behaviour on LinkedIn. Our results show support for a weakening influence of CEOs’ reputation management on the positive relationship between firm size and corporate social responsibility controversies, but we do not find support for a strengthening effect on corporate social responsibility performance. In light of the fact that adequate corporate social responsibility performance involves more than just staying away from scandals, our findings indicate that CEOs who actively present themselves as environmentally and socially committed are more likely to do so in response to the pressure and current trend of being green and social than out of a real commitment.

The Impact of Analyst, CEO, and Firm Reputations on Investors in the UK and Japanese Stock Markets

AbstractWe examine the importance of multiple agents’ reputations on the market's reaction to analysts’ stock recommendation revisions (analyst revisions), individually and interactively, in the UK and Japanese stock markets. We find some notable variations in reputation effects between the two markets. In the UK, analyst reputation amplifies the market's reaction to analyst revisions, while in Japan, analyst reputation has no significant impact. Firm reputation diminishes (amplifies) the market's reaction to analyst revisions in the UK (Japan). Only CEO reputation generates similar effects in the UK and Japan, dampening the market's reaction to analyst revisions. We also find that reputations interact in different ways in the two markets. Specifically, firm reputation and CEO reputation tend to moderate the positive effect of analyst reputation in the UK; however, in Japan, CEO reputation tends to moderate the positive effect of firm reputation, but there is no significant interaction effect between analyst reputation and CEO/firm reputation. Our findings are explained using insights both from formal economic models and from various cultural and institutional characteristics.

CEO Reputation and Corporate Risk-Taking: Managerial Competence or Managerial Defence?

ABSTRACT This study uses China’s A-share listed companies as a research sample to empirically examine the impact of CEO reputation on corporate risk-taking. Our study finds that CEO reputation is positively associated with corporate risk-taking; that is, it supports the managerial competence hypothesis. Furthermore, the concrete path of CEO reputation affecting enterprise risk-taking is shown by the fact that enterprises with a higher CEO reputation reflect higher degrees of innovation (including innovation investment and output), frequency of mergers and acquisitions, capital expenditures, and excessive debt. Heterogeneity analysis shows that the effect of CEO reputation on corporate risk-taking is present only in firms with a higher degree of CEO reputation and a lower level of external governance, and there are no statistically significant differences in the above effects across the nature of property rights. We also find that CEOs with better reputations have higher compensation levels and lower board dissent, which is also consistent with the managerial competence hypothesis. An analysis of the economic consequences shows that a CEO’s reputation can ultimately increase firm value by promoting corporate risk-taking. In addition, the effect of CEO reputation on firm risk reverses to a negative relationship when the CEO is older and has a longer tenure, thereby exhibiting the managerial defense characteristics of reputation.

The Relation between CEO Reputation, Financial Distress, Internal Control, and Earnings Management

Purpose: The purpose of this research is to analyze the effect of internal control and financial distress on earnings management and add the CEO’s reputation as a moderating variable. The object of this study is to determine the companies that listed on Indonesia Stock Exchanges between 2019 and 2020. The research data were tested and analyzed using panel regression analysis on SmartPLS software. Methodology: The research sample is chosen using the purposive sampling technique. Data analysis for the study employed the SmartPLS program. This research used accrual earnings management to measure the earnings management, springate model to measure financial distress, internal control index to measure internal control and CEO’s reputation index is used to measure CEO’s reputation. Findings: The research results found that financial distress and internal control positively affect earnings management. In addition, this research results also found that a CEO’s reputation can have a moderately significant and positive effect on the relationship between financial distress and earnings management. Originality/Value: This research finding is helpful for corporate governance in maximizing investment strategies. The consideration of the value of internal control is also a reference when investing. As such, it tends to assist company management in executing investment strategies to see the value of the CEO's reputation and internal controls. The novelty research provides new insight into how CEO’s reputation moderates the relationship between financial distress and earning management.

A Good Name is Rather to Be Chosen: The Impact of CEO Reputation on Corporate Green Innovation

A Good Name is Rather to Be Chosen: The Impact of CEO Reputation on Corporate Green Innovation

Effect of CEO reputation on company financial distress: Evidence from Pakistan

The purpose of this study is to explore the influence of CEO Reputation on the Company Financial Distress. The population of the study is all non-financial companies that are listed on the Pakistan stock exchange (PSX). In this research, the final sample size is 285 companies that cover the period of the study from 2006 to 2017. CEO reputation plays important role in predicting financial distress. Based on the upper echelon theory, CEOs can influence in a company decisions making, value creation and financial reporting decisions based on their specific skills, reputation and personal characteristics. Previous studies in the context of Pakistan are lacking to check the association between CEO reputation and company financial distress. This study contributes to the literature and fills this gap. This study also suggest that to explore the link between CEO reputation and financial distress in the emerging market.

경영자특성과 평판자본, 기업사회적책임(CSR)의 역할검증

This paper examines the relationship between CEO’s characteristics and reputation capital, and analyzes the moderating effect of CSR activities. Non－financial KOSPI firms from 2006 to 2019 and KEJI index are employed and analysed using pooled OLS regression with clustering. This paper shows that CEO overconfidence or Hubris negatively affects reputation capital, while CSR have a positive effect on reputation capital. This negative relationship between overconfidence(Hubris) and reputation capital is reduced by CSR. These results are in line with the prior studies that CEO uses CSR as a strategic way of hedging. These results are significant because the negative impact of CEO’s characteristics on corporate reputation can be mitigated through CSR activities where strategic choices for variables affecting a company’s long－term value are important for sustainable management. This study expands the scope of related research and provides implications to academia and stakeholders

A Review of the Importance of CEO Reputation in the Context of Personal and Corporate Reputation

İtibar kavramı subjektif bir yapı olmasının beraberinde, algılama yoluyla birey ve firmalara atfettiğimiz değeri içeren ve karar verme mekanizmamızda gömülü olarak yer alan olgudur. Değer atfının öncülü olan tutumlar, davranışlar, inançlar, kültür gibi öğelerin de izlerini taşıyan itibar kavramı, çeşitli disiplinlerce inceleme konusu olmuştur. Liderler veya yöneticiler kişisel itibarlarını kurumları ile bağdaştırmış ya da bağdaştıramamış ve sonucunda paydaşları ile olan ilişkisel ağlarının yapılarını olumlu ya da olumsuz etkilemişlerdir. Bu yönden, kişi itibarının kurum itibarını etkileme durumu tüm değişkenleri ile araştırmalara konu olmaktadır. Faaliyetlerinde kurumsal itibarlarından hareket eden firmalar, kurumsal itibarın öncülleri ve sonuçlarının neler olduğunu ortaya çıkarmayı istemektedir. Kurumsal itibarı oluşturan öncülleri ve kurumsal itibarın yol açtığı birtakım sonuçların araştırılması ve ilgili değişkenlerin iyi yönetilmesi sonucunda firmaların rekabet avantajı sağlayacakları beklenmektedir. Bu çalışmada, tepe yöneticilerinin itibarının kurumsal itibarın bir öncülü olduğu varsayımından hareket ederek, ilgili kavramların ve teorik çerçevenin değerlendirilmesi gerekliliği tartışılmıştır. Bununla birlikte, tepe yöneticisinin itibarının kişisel ve örgüt düzeylerinde farklılaşabildiği; ancak kurumsal itibar çalışmalarında yöneticinin itibarının, kurumsal çerçeve bağlamında incelenmesi gerekliliği vurgulanmıştır.

The Impact of ESG Management on Investment Decision: Institutional Investors’ Perceptions of Country-Specific ESG Criteria

Existing global ESG models are limited in terms of applicability and predictability, especially in countries with an unstable environment. On the other hand, utilizing internally made or privately sourced ESG models have caused issues relating to generalizability, comparability, and continuity. In our research, we present an ESG framework that is specific to South Korea, which has both global and country-specific factors in all three categories. The AHP model is used to determine how the three categories’ materiality would be viewed by institutional investors as well as how country-specific factors rank against global factors. The results of this study show that institutional investors place more importance on environmental and governance factors compared to social factors. Factors including shareholders’ rights, pollution and waste, greenhouse gas emissions, and risk and opportunity management are found to have greater influences on investors’ investment decisions. In addition, it was confirmed that both of the country-specific variables for South Korea, partnership with subcontractor and CEO reputation, have a significant influence on investment decisions. By having the ESG model validated by institutional investors, who are the main users of ESG disclosures of corporations, our methodology of presenting a country-specific model can be benchmarked by studies on other emerging markets with a variety of country-level specificities.

Does a CEO's private reputation impede corporate governance?

The CEO's reputation is a valuable intangible resource for a firm. This study investigates the effect of a CEO's reputation on corporate governance efficiency. Using a sample of 3504 Chinese listed companies from 2002 to 2018, we find that the CEO's reputation built through corporate donations reduces the probability of their forced turnover. This effect is stronger when a firm/CEO has more media exposure and weaker when a firm's peer companies donate more. The mechanism of this effect is that the CEO's reputation is a valuable resource that makes it difficult for firms to find a substitute in a short time; therefore, firing a CEO who has a high reputation is costly to a firm, and reputable CEOs are likely to become entrenched. Our study demonstrates a new perspective on the CEO's reputation by explaining the failure of corporate governance and provides practical insights for constraining managers and promoting the management efficiency of enterprises.

The Easy Life of Superstar CEOS: Evidence from Shareholder Proposals and Mutual Fund Voting

This paper examines the influence of CEO reputation on corporate proxy voting. Relying on prestigious business awards (through which the CEO is elevated to superstar status) as salient shocks to CEO reputation, we find that shareholders in aggregate, and mutual funds in particular, are more likely to vote with management (i.e., against shareholder proposals) when the CEO is a superstar. We use a battery of matching procedures to mitigate the concern that these results are driven by selection. We further show that shareholder proposals, especially contested ones and those with positive ISS recommendations, are significantly more likely to fail when the CEO is a superstar. Our results suggest that investors are sensitive to the external appraisal conveyed by the superstar status and prefer not to oppose management.

Corporate reputation analysis in social media (e. g. Wildberries online store)

This article is devoted to analyzing the reputation of Wildberries and its leader in social networks using quantitative and qualitative indicators. The specificity of the concept of "reputation capital" has been defined. The relevance of reputation capital research for the online store Wildberries was determined. The analysis of reputation risks for the company and its manager is given, possible negative events in the sphere of relations with suppliers, employees, customers, legal risks, consequences of digitalization, changes in market conditions and customers' demands are defined. The ratio of potential and realized reputational risks for the company is analyzed. It was revealed that the majority of realized risks relate to the quality of goods, professionalism of the front-office personnel and working conditions. The company's CEO's reputation positioning is assessed and recommendations are given based on the current state of affairs. The analysis of social media showed that the company has a positive reputation, but there are shortcomings that need to be addressed and addressed by management. In general, the company carries out a whole range of procedures to maintain its reputation and a sound financial position, focusing on stakeholders. It was found that the non-publicity of the manager does not have a negative impact on the reputation of the company. To form a positive reputation of the company, it is recommended to think over the photocontent, texts and tone of communication depending on the purpose of the site used, to add personification of posts, to conduct regular monitoring of all components of the company's reputation in social media to make decisions on timely correction of reputation strategy.

CEO Reputation and Market Reactions in Indonesia

CEO Reputation and Market Reactions in Indonesia

THE BENCHMARK OF INVESTOR DECISIONS TO INVEST IN THE INITIAL PUBLIC OFFERING (IPO)

This study aims to examine how the influence of benchmarks used by investors in the process of making investment decisions during the IPO. The dependent variable in this study is the investment decision while the independent variable is financial behavior bias consisting of reputation underwriter, CEO reputation, financial statements, representativeness bias, availability bias, overconfidence bias and self control bias. In research using primary data by providing questionnaires to investors who invest during the IPO. The population is investors in Yogyakarta with a sample of 100 respondents taken by purposive sampling method according to the specified criteria. Questionnaires were tested with validity and reliability tests. To test the hypothesis multiple regression analysis is used. The results of this study indicate that reputation underwriters, CEO reputation, financial statements, representativeness bias and availability bias do not affect investment decision making during the IPO process. While overconfidence bias and self control bias have a significant positive effect on investment decision making during the IPO process.