CEO identity and media perception: The influence on family firms’ brand importance

This study expands upon previous research on family firm leadership by exploring the role of CEO identity – i.e., family vs. nonfamily CEO – concerning the way media perceive the brand of the family firm– i.e., brand importance. Drawing on endorsement theory, we suggest that CEO identity influences media perception of the family firm and its brand, thereby affecting the extent of brand importance generated by these external stakeholders. Additionally, we propose that the generation of the family controlling the firm may influence the relationship between CEO identity and brand importance. Employing text mining and social network analysis techniques, we use the Semantic Brand Score to measure the importance that media place on family firm brands. Our analysis of a sample of 63 Italian family firms and 52,555 news articles published about these firms shows a positive and significant relation between the presence of a nonfamily CEO and brand importance; nevertheless, this relation is negatively moderated by the family firm generation.