CEO social media celebrity status and credit rating assessment

IF 5.9 3区 管理学 Q1 BUSINESS
Yue Fang, Xin Bao, Baiqing Sun, Raymond Yiu Keung Lau
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引用次数: 0

Abstract

Purpose

This paper aims to investigate the effect of CEO social media celebrity status on credit ratings and to determine whether potential threats on the CEO celebrity status negatively moderate the above association.

Design/methodology/approach

The authors collected tweets for 874 CEOs from 513 unique S&P 1500 firms. A panel data analysis was conducted on a panel with 4,235 observations from 2009 to 2020. We then tested the hypothesis with the ordinal logit model.

Findings

The empirical findings confirmed that CEO social media celebrity status is positively associated with corporate credit rating outcomes. Our path analyses revealed that CEOs with higher social media celebrity status have less incentive to conduct risk-taking behaviors and thus benefit credit ratings. When the rating agencies perceive potential threats to CEO celebrity status, including CEO myopia and CEO overconfidence, the association between CEO social media celebrity status and credit rating is weakened.

Practical implications

This study provides an in-depth understanding of CEO social media perception on credit ratings for firms' managers and capital market participants. Findings can help managers and firms improve their strategies for leveraging social media to release credit constraints. The debt market participants could adopt the CEO social media celebrity status and its concerned threats to setting debt contracts with an adequate price.

Originality/value

This is likely to be the first study that examines the effect of CEO social media celebrity status on credit ratings. The findings of this study also reveal that social media certificated celebrity CEOs tend to be capable of enhancing firm revenue and have lower risk-taking incentives, unlike mass media certificated celebrity CEOs.

首席执行官社交媒体名人地位和信用等级评估
本文旨在研究首席执行官社交媒体名人地位对信用评级的影响,并确定首席执行官名人地位的潜在威胁是否会对上述关联产生负面调节作用。作者收集了来自 513 家 S&P 1500 公司的 874 位首席执行官的推文。我们对 2009 年至 2020 年的 4,235 个观察值进行了面板数据分析。实证结果证实,CEO 的社交媒体名人地位与企业信用评级结果呈正相关。我们的路径分析显示,社交媒体名人地位较高的首席执行官进行风险承担行为的动机较低,从而有利于信用评级。当评级机构认为 CEO 名人效应面临潜在威胁时,包括 CEO 近视和 CEO 过度自信,CEO 社交媒体名人效应与信用评级之间的关联就会减弱。研究结果可以帮助管理者和企业改进策略,利用社交媒体释放信用约束。债务市场参与者可以采用 CEO 社交媒体名人地位及其相关威胁来制定价格适当的债务合同。原创性/价值这可能是第一项研究 CEO 社交媒体名人地位对信用评级影响的研究。本研究的结果还显示,与大众媒体认证的名人 CEO 不同,社交媒体认证的名人 CEO 往往有能力提高公司收入,并具有较低的风险承担动机。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
Internet Research
Internet Research 工程技术-电信学
CiteScore
11.20
自引率
10.20%
发文量
85
审稿时长
>12 weeks
期刊介绍: This wide-ranging interdisciplinary journal looks at the social, ethical, economic and political implications of the internet. Recent issues have focused on online and mobile gaming, the sharing economy, and the dark side of social media.
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