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The importance and influence of Chief Executive Officer’s reputation to firm value and performance has been a great subject of debate in finance. A 2015 survey by Webber Shandwick of over 1700 executives worldwide has shown that CEO reputation is a significant driver of company reputation and value. The survey showed that executives attribute 45% of their company’s reputation and 44% of company’s market value to the reputation of their CEO, on average. The external visibility of the CEO matters not only to shine a light on the company, but also as a channel through which the firm can tap into external resources, such as representation in other boards. Additionally, the efficient contracting hypothesis argues that CEOs with high reputation are more prone to make decisions that favor the company’s interests (Saidu, 2019).
Eduardo, Benjamim, "CEO Celebrity Status and Readability of Financial Statements" (2022). 2022 Awards for Excellence in Student Research and Creative Activity - Documents. 6.
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