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The Relationship Between CEO Media Appearances and Compensation

Author

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  • Jingoo Kang

    (Nanyang Business School, Nanyang Technological University, Singapore 639798)

  • Andy Y. Han Kim

    (Sungkyunkwan Business School, Sungkyunkwan University, Seoul 30363, Korea)

Abstract

Why do chief executive officers (CEOs) seek media appearances and what benefit do they gain from it? Using a sample of 2,666 U.S. firms from 1997 to 2009, we found that a CEO’s appearance in CNBC interviews and major news articles has a positive relationship with his or her compensation in the following year, after controlling for firm performance and other confounding factors. We further found that the positive relationship is weaker when the CEO is with a large company and is stronger when the CEO is with a company demonstrating strong stock market performance. Finally, we found that when the CEO has a high equity ownership or is a founder CEO, the positive relationship disappears.

Suggested Citation

  • Jingoo Kang & Andy Y. Han Kim, 2017. "The Relationship Between CEO Media Appearances and Compensation," Organization Science, INFORMS, vol. 28(3), pages 379-394, June.
    • Handle: RePEc:inm:ororsc:v:28:y:2017:i:3:p:379-394
    DOI: 10.1287/orsc.2017.1128
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    3. Vivek Astvansh & Yen‐Yao Wang & Wei Shi, 2022. "The effects of the news media on a firm's voluntary product recalls," Production and Operations Management, Production and Operations Management Society, vol. 31(11), pages 4223-4244, November.
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    5. José‐Luis Godos‐Díez & Laura Cabeza‐García & Roberto Fernández‐Gago & Mariano Nieto‐Antolín, 2020. "Does CEO media exposure affect corporate social responsibility?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 825-840, March.

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