CEO likeability: effects on analyst recommendations

Purpose This study introduces CEO likeability, distinguishes it from charisma and personality, and assesses its effect on analyst stock recommendations. Design/methodology/approach We define CEO likeability as an other-rated, positive valence attribution about the degree to which a CEO's characteristics and behaviors are considered pleasant or favorable. We assessed its effect on analyst recommendations with a sample of 75 CEOs and through the use of video-based assessment. Findings CEO likeability was a significant predictor of favorable analyst ratings (p < 0.001). Further, multilevel mediation analyses offer evidence that CEO likability mediates the relationships between CEO charisma and analyst recommendations and between CEO openness and analyst recommendations. Originality/value CEO likeability is a promising construct for strategic leadership research, and can be evaluated using a video-based behavioral assessment method.