What is the relationship between CEO reputation and company stock price?

The causal chain runs through several distinct channels. Investor surveys consistently point to CEO reputation as a material factor in valuation, particularly for companies in the small and mid-cap range where the executive is more identifiable with the company. Evidence suggests that strong CEO digital presence is associated with lower senior departure rates. Customer surveys in B2B categories indicate CEO reputation affects purchase decisions in considered-purchase categories. Event-risk exposure (the magnitude of a stock price reaction to negative news) tends to be lower for executives with stronger pre-existing digital infrastructure because the new information lands against a more complete record. None of these effects is enormous in isolation; their combination tends to produce a valuation premium for executives who have invested in the work, and a corresponding discount for those who have not.