IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v139y2022icp869-880.html

The impact of celebrity CEOs on restaurant firm performance: The moderating role of environmental dynamism

Author

Listed:
  • Kim, Bora
  • Lee, Seoki

Abstract

In today’s media-saturated world, intense media attention propels some CEOs to stardom. This social escalation of CEOs to celebrities inherently affects their actions and strategic choices, and thus the performance of their host organizations. Despite the importance of understanding upper echelons—especially celebrity CEOs in the tourism and hospitality industry—researchers have devoted little attention to the implications of CEO celebrity. As a result, whether CEO celebrity serves as a company asset or liability remained largely unknown. Based on the upper echelons theory and CEOs’ behavioral constraints, this study uncovers and provides initial empirical evidence on how a CEO’s celebrity affects firm performance, with a detailed examination of the restaurant industry. Further, we show that industry dynamism, an important external environmental factor, plays a positive moderating role such that the positive effect of CEO celebrity on firm performance becomes weaker as industry dynamism increases.

Suggested Citation

  • Kim, Bora & Lee, Seoki, 2022. "The impact of celebrity CEOs on restaurant firm performance: The moderating role of environmental dynamism," Journal of Business Research, Elsevier, vol. 139(C), pages 869-880.
    • Handle: RePEc:eee:jbrese:v:139:y:2022:i:c:p:869-880
    DOI: 10.1016/j.jbusres.2021.10.031
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S014829632100758X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2021.10.031?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Roy L. Simerly & Mingfang Li, 2000. "Environmental dynamism, capital structure and performance: a theoretical integration and an empirical test," Strategic Management Journal, Wiley Blackwell, vol. 21(1), pages 31-49, January.
    2. Leland, Hayne E, 1994. "Corporate Debt Value, Bond Covenants, and Optimal Capital Structure," Journal of Finance, American Finance Association, vol. 49(4), pages 1213-1252, September.
    3. Annemette Kjærgaard & Mette Morsing & Davide Ravasi, 2011. "Mediating Identity: A Study of Media Influence on Organizational Identity Construction in a Celebrity Firm," Journal of Management Studies, Wiley Blackwell, vol. 48(3), pages 514-543, May.
    4. Baron, Robert A. & Tang, Jintong, 2011. "The role of entrepreneurs in firm-level innovation: Joint effects of positive affect, creativity, and environmental dynamism," Journal of Business Venturing, Elsevier, vol. 26(1), pages 49-60, January.
    5. Lee, Gilsoo & Cho, Sam Yul & Arthurs, Jonathan & Lee, Eun Kyung, 2020. "Celebrity CEO, identity threat, and impression management: Impact of celebrity status on corporate social responsibility," Journal of Business Research, Elsevier, vol. 111(C), pages 69-84.
    6. Antoaneta P. Petkova & Violina P. Rindova & Anil K. Gupta, 2013. "No News Is Bad News: Sensegiving Activities, Media Attention, and Venture Capital Funding of New Technology Organizations," Organization Science, INFORMS, vol. 24(3), pages 865-888, June.
    7. Kee H. Chung & Stephen W. Pruitt, 1994. "A Simple Approximation of Tobin's q," Financial Management, Financial Management Association, vol. 23(3), Fall.
    8. Jalal, Abu M. & Prezas, Alexandros P., 2012. "Outsider CEO succession and firm performance," Journal of Economics and Business, Elsevier, vol. 64(6), pages 399-426.
    9. Keith Weigelt & Colin Camerer, 1988. "Reputation and corporate strategy: A review of recent theory and applications," Strategic Management Journal, Wiley Blackwell, vol. 9(5), pages 443-454, September.
    10. Kreps, David M. & Wilson, Robert, 1982. "Reputation and imperfect information," Journal of Economic Theory, Elsevier, vol. 27(2), pages 253-279, August.
    11. Scott D. Graffin & James B. Wade & Joseph F. Porac & Robert C. McNamee, 2008. "The Impact of CEO Status Diffusion on the Economic Outcomes of Other Senior Managers," Organization Science, INFORMS, vol. 19(3), pages 457-474, June.
    12. Violina P. Rindova & Charles J. Fombrun, 1999. "Constructing competitive advantage: the role of firm–constituent interactions," Strategic Management Journal, Wiley Blackwell, vol. 20(8), pages 691-710, August.
    13. Yim, Soojin, 2013. "The acquisitiveness of youth: CEO age and acquisition behavior," Journal of Financial Economics, Elsevier, vol. 108(1), pages 250-273.
    14. David J. Denis & Stephen B. McKeon, 2012. "Debt Financing and Financial Flexibility Evidence from Proactive Leverage Increases," The Review of Financial Studies, Society for Financial Studies, vol. 25(6), pages 1897-1929.
    15. Zeki Simsek, 2007. "CEO tenure and organizational performance: an intervening model," Strategic Management Journal, Wiley Blackwell, vol. 28(6), pages 653-662, June.
    16. Mathew L. A. Hayward & Violina P. Rindova & Timothy G. Pollock, 2004. "Believing one's own press: the causes and consequences of CEO celebrity," Strategic Management Journal, Wiley Blackwell, vol. 25(7), pages 637-653, July.
    17. Angelo Fanelli & Vilmos F. Misangyi & Henry L. Tosi, 2009. "In Charisma We Trust: The Effects of CEO Charismatic Visions on Securities Analysts," Organization Science, INFORMS, vol. 20(6), pages 1011-1033, December.
    18. Sam Y. Cho & Jonathan D. Arthurs & David M. Townsend & Douglas R. Miller & Jeffrey Q. Barden, 2016. "Performance deviations and acquisition premiums: The impact of CEO celebrity on managerial risk‐taking," Strategic Management Journal, Wiley Blackwell, vol. 37(13), pages 2677-2694, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adnan Ali & Qian Yang & Xu Jiang, 2026. "Promoting Sustainable Development: Green Strategies and Firm Performance in Emerging Economies," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(S1), pages 719-735, January.
    2. Campbell, Robert J. & Short, Cole E. & Graffin, Scott D., 2025. "Balancing the radical and the incremental: CEO affiliative humor and organizational ambidexterity," Research Policy, Elsevier, vol. 54(1).
    3. Zhou, Linzi & Long, Wenbin & Qu, Xin & Yao, Daifei, 2023. "Celebrity CEOs and corporate investment: A psychological contract perspective," International Review of Financial Analysis, Elsevier, vol. 87(C).
    4. Li, Hui & Chen, Xi-Zhuo, 2024. "Tourism-industrial atmosphere and executive change: How can they impact firms? - A mixed context analysis study," Annals of Tourism Research, Elsevier, vol. 109(C).
    5. Xu, Le & Ponnapalli, Ajay Rama & Wang, Chen, 2025. "CEO–TMT vertical pay gap and firm productivity: A tournament theory perspective," Journal of Business Research, Elsevier, vol. 197(C).
    6. Huang, Yuhong & Chen, Xiaozhou & Chen, Xinmin, 2026. "Social credit environment and corporate trade credit financing: Evidence from China," Journal of Business Research, Elsevier, vol. 205(C).
    7. Wenjuan Wang & Muhammad Imran & Kishwar Ali & Abdul Sattar, 2025. "Green policies and financial development in G7 economies: An in‐depth analysis of environmental regulations and green economic growth," Natural Resources Forum, Blackwell Publishing, vol. 49(2), pages 1081-1107, May.
    8. Danni Yu & Shen Tao & Abdul Hanan & Tze San Ong & Badar Latif & Mohsin Ali, 2022. "Fostering Green Innovation Adoption through Green Dynamic Capability: The Moderating Role of Environmental Dynamism and Big Data Analytic Capability," IJERPH, MDPI, vol. 19(16), pages 1-20, August.
    9. Fandi Achmad & Yudha Prambudia & Augustina Asih Rumanti, 2023. "Improving Tourism Industry Performance through Support System Facilities and Stakeholders: The Role of Environmental Dynamism," Sustainability, MDPI, vol. 15(5), pages 1-24, February.
    10. Tachia Chin & Sanjay Kumar Singh & Liang Wu & Grigorios Lamprinakos, 2025. "Linking CEO Celebrity to the Ethical Behavior of Family Firms in a Digital Age: Evidence from China," Journal of Business Ethics, Springer, vol. 198(4), pages 787-811, May.
    11. Bao, Xin & Sun, Baiqing & Han, Meini & Lin, Han & Lau, Raymond Y.K., 2023. "Quantifying the impact of CEO social media celebrity status on firm value: Novel measures from digital gatekeeping theory," Technological Forecasting and Social Change, Elsevier, vol. 189(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lena Kamp & Lorenz Graf-Vlachy, 2025. "Strategic leader reputation: a review and research agenda," Management Review Quarterly, Springer, vol. 75(4), pages 3521-3553, December.
    2. Ciaran Heavey & Zeki Simsek & Christina Kyprianou & Marten Risius, 2020. "How do strategic leaders engage with social media? A theoretical framework for research and practice," Strategic Management Journal, Wiley Blackwell, vol. 41(8), pages 1490-1527, August.
    3. Liu, Jing & Fan, Yizhong & Yu, Peng & Ren, Yijia, 2025. "Superstar CEOs and the presentation style of CSR reports: Truthful reflection or impression management?," International Review of Financial Analysis, Elsevier, vol. 105(C).
    4. Lee, Gilsoo & Cho, Sam Yul & Arthurs, Jonathan & Lee, Eun Kyung, 2020. "Celebrity CEO, identity threat, and impression management: Impact of celebrity status on corporate social responsibility," Journal of Business Research, Elsevier, vol. 111(C), pages 69-84.
    5. Xiaonan Sun & Javier Cifuentes‐Faura & Yao Xiao & Xiaoqian Liu, 2024. "A good name is rather to be chosen: The impact of CEO reputation incentives on corporate green innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 33(3), pages 2413-2431, March.
    6. Plaksina, Yulia & Gallagher, Liam & Dowling, Michael, 2019. "CEO social status and M&A decision making," International Review of Financial Analysis, Elsevier, vol. 64(C), pages 282-300.
    7. Zhou, Linzi & Long, Wenbin & Qu, Xin & Yao, Daifei, 2023. "Celebrity CEOs and corporate investment: A psychological contract perspective," International Review of Financial Analysis, Elsevier, vol. 87(C).
    8. Chen, Ying & Wang, Zhitao & Ye, Fan, 2025. "How do prestigious CEOs change corporate ESG initiatives?," International Review of Financial Analysis, Elsevier, vol. 104(PA).
    9. Wei Shi & Yan Zhang & Robert E. Hoskisson, 2017. "Ripple Effects of CEO Awards: Investigating the Acquisition Activities of Superstar CEOs' Competitors," Strategic Management Journal, Wiley Blackwell, vol. 38(10), pages 2080-2102, October.
    10. Xiaofeng Quan & Cheng Xiang & Ru (Tina) Gao, 2024. "Reputation is golden: Superstar CEOs and trade credit," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 51(1-2), pages 631-656, January.
    11. Rajiv Krishnan Kozhikode & Rekha Krishnan, 2022. "Stepping into Ill-Fitting Shoes: Local Status Contrasts and Acquisitiveness of New CEOs," Strategy Science, INFORMS, vol. 7(3), pages 210-239, September.
    12. Marco Caiffa & Vincenzo Farina & Lucrezia Fattobene, 2020. "All that glitters is not gold: CEOs' celebrity beyond media content," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 25(3), pages 444-460, July.
    13. Tachia Chin & Sanjay Kumar Singh & Liang Wu & Grigorios Lamprinakos, 2025. "Linking CEO Celebrity to the Ethical Behavior of Family Firms in a Digital Age: Evidence from China," Journal of Business Ethics, Springer, vol. 198(4), pages 787-811, May.
    14. Bao, Xin & Sun, Baiqing & Han, Meini & Lin, Han & Lau, Raymond Y.K., 2023. "Quantifying the impact of CEO social media celebrity status on firm value: Novel measures from digital gatekeeping theory," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    15. Han, Yu & Chi, Wei & Zhou, Jinyi, 2022. "Prosocial imprint: CEO childhood famine experience and corporate philanthropic donation," Journal of Business Research, Elsevier, vol. 139(C), pages 1604-1618.
    16. Daniel L. Gamache & Michael D. Pfarrer & Kevin Curran, 2024. "Organizational hubris: Its antecedents and consequences for stakeholder relationships," Strategic Management Journal, Wiley Blackwell, vol. 45(7), pages 1366-1392, July.
    17. Kim, Sang-Joon & Bae, John & Oh, Hannah, 2019. "Financing strategically: The moderation effect of marketing activities on the bifurcated relationship between debt level and firm valuation of small and medium enterprises," The North American Journal of Economics and Finance, Elsevier, vol. 48(C), pages 663-681.
    18. Ivan A. Guitart & Manfred Schwaiger & Johanna Eberhardt, 2024. "How and Why Does Corporate Reputation Moderate Mass Media News’ Impact On Market Value?," Schmalenbach Journal of Business Research, Springer, vol. 76(1), pages 1-28, March.
    19. Schatzel, Kim & Droge, Cornelia & Calantone, Roger, 2003. "Strategic channel activity preannouncements: An exploratory investigation of antecedent effects," Journal of Business Research, Elsevier, vol. 56(12), pages 923-933, December.
    20. Amal Aouadi & Sylvain Marsat, 2018. "Do ESG Controversies Matter for Firm Value? Evidence from International Data," Journal of Business Ethics, Springer, vol. 151(4), pages 1027-1047, September.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:139:y:2022:i:c:p:869-880. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.