CEOs in the Media: The Impact on Stock

Open Access
Burlingame, Bethany Lynne
Area of Honors:
Finance (Behrend)
Bachelor of Science
Document Type:
  • Executives
  • media
  • impact
  • stock
In this paper, we examine the share price response to announcements of CEOs and other top executives receiving acknowledgement in the media. We derive our data from Time magazine’s annual “Time100: The Most Influential People in the World” list and Treasury and Risk’s annual list of the “100 Most Influential People in Finance.” To determine the results, we formed portfolios for each of the lists and matched them to an S&P 500 portfolio. Using the stock returns, we find that in the short-run, there is no impact on the Time portfolio and a negative impact on the Treasury and Risk portfolio. In the long run on a risk-adjusted basis, Time outperforms the S&P 500 by a greater magnitude than Treasury and Risk.