XXV Edition

1-2 December 2016"

All That Glitters is Not Gold: CEOs' celebrity beyond media content

Caiffa Marco, University of Rome Tor Vergata
Farina Vincenzo, University of Rome Tor Vergata
Fattobene Lucrezia, University of Rome Tor Vergata

Abstract Mass media are known to be powerful in directing the public’s attention towards specific issues and socially shape individual’s opinions. In this study, we focus on Italian listed companies’ CEOs, Chairmen and Vice-Chairmen over a time span of 16 years to observe how the content of newspaper articles, the visibility of directors, and the mention by the press of celebrity (Top10) and not famous (Last_d) directors, influence investors’ reaction to news. Results reveal that celebrity status is not necessarily associated with positive emotional responses: besides the impact of the content of the news, visibility and celebrity are rather associated with a negative impact on investors’ opinion; on the other hand, scarce visibility does not drive any additional effect on stock market prices.

Area: Corporate Governance (Nedcommunity Award)

Keywords: celebrity CEOs, stock market, investor sentiment, news, text analysis

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