THE INFLUENCE OF THE CEO POPULARITY ON PERFORMANCE OF BANKING COMPANIES AT THE EARLIER STAGES OF COVID-19

Dian Kusuma Wardhani, Wiwik Supratiwi

Abstract


Abstract

This study aims to obtain empirical evidence about the influence of CEO popularity on banking performance at the earlier stages of the COVID-19 pandemic in Indonesia. The CEO popularity significantly improve based on their achievements in the public mass media. The study sample consisted of 108 banking companies listed on the Indonesia Stock Exchange in Q1 - Q3 2020. Panel data regression with a common influence model approach was used for analysis, while the company performance was measured using Tobin's Q. The result showed that CEO popularity in the banking sector positively affects company performance. Therefore, hiring popular CEO helps obtain better company performance.

Abstrak 

Penelitian ini bertujuan untuk mendapatkan bukti empiris tentang pengaruh popularitas CEO terhadap kinerja perusahaan perbankan pada awal pandemi Covid-19 di Indonesia. Popularitas CEO diperoleh dengan intensitas pemberitaan prestasi mereka di media masa publik. Sampel penelitian ini terdiri atas 108 perusahaan perbankan yang terdaftar di Bursa Efek Indonesia untuk periode Q1 – Q3 Tahun 2020. Penelitian ini menggunakan teknik analisis regresi data panel dengan pendekatan common effect model. Kinerja perusahaan diukur menggunakan Tobin’s Q. Temuan penelitian ini menunjukkan bahwa popularitas CEO di sektor perbankan berpengaruh positif pada kinerja perusahaan. Oleh karena itu, penelitian ini menunjukkan bahwa mempekerjakan CEO populer merupakan salah satu upaya untuk mendapatkan kinerja perusahaan yang lebih baik.


Keywords


CEO popularity; company performance; CEO characteristics; Popularitas CEO; kinerja perusahaan; karakteristik CEO

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References


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