 Does a CEO's private reputation impede corporate governance?Guang Yang, Ruixian Huang, Yukun Shi and Zhehao Jia Economic Modelling, 2021, vol. 104, issue C Abstract: 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. Keywords: CEO private Reputation; Corporate donation; CEO forced Turnover; Media exposure (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:104:y:2021:i:c:s0264999321002297 DOI: 10.1016/j.econmod.2021.105640 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
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