| The reputation of the CEO is an important part of corporate reputation, and to someextent it also can influence on the corporate performance. In this paper, in order to studythe relationship between CEO reputation and corporate performance, we selected451companies in the Shanghai and Shenzhen main board market in China in the period2009to2012as samples, which CEO（general manager）there is no change. The designincludes four dimensions of CEO reputation index: the media exposure, awards, thepart-time and tenure of CEO to measure the reputation of the enterprise managers andusing the return on assets to represent the corporate performance. This paper based on thesample data to demonstrate the relationship between the reputations of CEO andcorporate performances.The empirical study shows that under the condition of the corporate performance isgood, high CEO reputation is better than low CEO reputation can continue the corporategood performance. This conclusion supports the hypothesis that CEO reputation can beused as a kind of signal of ability. Under the condition of poor performance in thecompany, high CEO reputation is not better than low CEO reputation to be able toreverse the corporate poor performance. This conclusion supports the hypothesis ofimage-building of reputation. These conclusions can be reference for CEO when theymake a choice between make an effort to enhance the corporate performance andimprove their reputation, and remind investors when they need to invest can’t completelyaccording to the personal reputation of CEO to make investment decisions.In addition, we further grouping test the relationship between CEO reputation andcorporate performance in state-owned enterprises and non-state-owned enterprises. It wasfound that in state-owned enterprises, when the corporate performance is good, highCEO reputation is not less than the low CEO reputation more able to continue thecorporate good performance, so this conclusion supports the hypothesis ofimage-building of reputation. When performance is poor, high CEO reputation is not lessthan the low CEO reputation more able to reverse the corporate poor performance, alsosupports the hypothesis of image-building of reputation. In non-state enterprises, when the corporate performance is good, high CEO reputation will be better than the low CEOreputation more able to continue the corporate good performance, which supports thehypothesis that the CEO reputation can be used as a kind of signal of ability. Whenperformance is poor, high CEO reputation is not less than the low CEO reputation moreable to reverse the corporate poor performance, so supports the hypothesis ofimage-building of reputation. |
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