CEO Celebrity on Firm Value

The celebrity status accorded to CEOs by leading business media describes executives who successfully lead high-performing firms (Hayward et al., 2004; Wade et al., 2006). This status includes high public attention and positive emotional responses from stakeholders, and is reinforced by the media (Rindova et al., 2006). Celebrity CEOs are considered an intangible asset that provides benefits such as good corporate prospects, investor confidence, attraction of quality employees, and improved stock market performance (Fanelli & Grasselli, 2006; Fombrun, 1996). Although this status provides personal benefits to the CEO, such as higher compensation and good job prospects, failure to maintain outstanding performance may result in a rapid loss of these benefits. Celebrity CEOs tend to manage stakeholder impressions to maintain their status and future benefits. Firm value plays a crucial role in determining the company's stock price as well as the level of investor satisfaction. Noerirawan (2012) defines firm value as the condition achieved by the company as a result of its business performance and strategy, which not only shows the company's performance but also its future prospects.