A Quantitative Study Of The Impact Of Star Entrepreneurship On The Relevant Stock Prices

In recent years,with the development of society and economy,the reputation of entrepreneurs is getting more and more attention.This paper uses the ranking list of the mainstream media as the proxy variable,and the " The 25 most influential business leaders of the year " named by Entrepreneur magazine from 2004 to 2005 as the study sample.Following the event study method,the result of the statistical test shows that the average excess rate of return is observably negative,indicating that the star entrepreneur usually has a negative effect on the company’s stock price.In order to enhance the reputation and get a brighter future,entrepreneurs may spend more time on self-development rather than the company,which may lead to very bad influence on the company management.Further examines are conducted on the nature of different exchanges,different companies and whether they have a lifetime achievement award,the result shows that the nature of the exchange and the enterprise does not significantly affect the average excess rate of return,but the lifetime achievement award does.The average excess rate of return is significantly negative if the entrepreneur hasn’t received a lifetime achievement award,which means that the lifetime achievement award has a positive effect on the stock price.Lifetime Achievement Award can be regarded as a certain contribution to the industry and has been widely recognized,so the ability of the award owner always lives up to his/her name.Finally,according to the research of this paper,the following suggestions are made: First,strengthen the theoretical research on the reputation measurement system of entrepreneurs.Second,establish a perfect entrepreneur reputation incentive mechanism.Third,establish a more complete government regulatory mechanism to provide an excellent environment for the reputation mechanism.