Internationale Zeitschrift für Wirtschafts- und Managementwissenschaften

Celebrity Chief Executive Officers Influence on Firm Performance: A Review of Theory and Evidence

Abstract

Edwin W* and Benjamin M

There have been a lot of studies on Chief Executive Officers’ (CEO) influence on firm performance. The studies have mainly focused on the Chief Executive Officers as a whole. Despite the various studies on the role of CEO as critical characters in the performance of firms, there does not seem to be specific focus on the influence of celebrity CEOs on firm performance. This study addresses the gap by reviewing existing theory and empirical literature and identifying the research gaps. The researcher has also developed a theoretical framework that explains the relationship between celebrity CEOs and firm performance. The review suggests that celebrity CEOs are under immense pressure as they are considered intangible assets and are expected to have high performance standards. This high expectation of celebrity status could have a negative influence on the firm performance.