Breaking the news: how does CEO media coverage influence consumer and investor evaluations?
Stäbler,Samuel Gala,Parachi
Stäbler,Samuel
Gala,Parachi
Abstract
This study investigates how CEO-related events covered in news media affect consumer evaluations. The conceptual model proposes six CEO-related news categories and details their impact on consumer evaluations as well as the degree to which these responses determine firms’ stock prices. The authors analyze a rich sample of 725 CEO-related events of 125 firms covered in leading US news outlets from 2009 to 2019. Using an econometric approach and an event study, they find that stories about CEO scandals detrimentally affect consumer evaluations, which translates to an immediate loss of more than US$500 million on stock markets, whereas stories about CEO altruism and CEO political ideologies have a positive impact on consumer evaluations. The authors provide insights into short and long-term effects and formulate actionable implications.
Description
Publisher Copyright: © The Author(s) 2024.
Date
2024-12
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Volume Title
Publisher
Research Projects
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Keywords
media coverage, Chief executive officer, consumer evaluations, event study
Citation
Stäbler, S & Gala, P 2024, 'Breaking the news : how does CEO media coverage influence consumer and investor evaluations?', Marketing Letters, vol. 35, no. 4, pp. 617-634. https://doi.org/10.1007/s11002-024-09720-y