CEO Branding
How Much Does a CEO's Reputation “Count” on the Athens Stock Exchange?
A study of 115 companies listed on the Athens Stock Exchange examines the importance of CEO recognition. How investors price risk. Article by Theodoros N. Krintas, PhD, CIIA, and Michael Auxentios Vlados.
At a time when the public image of CEOs is increasingly shaped by interviews, social media, conferences, and the financial press, a reasonable question arises:
Can a CEO’s visibility truly influence a company’s value? More specifically, can a well-known and “powerful” CEO reduce the cost at which a publicly traded company raises capital from the market?
Prompted by this question, we analyzed a sample of 115 companies listed on the Athens Stock Exchange and the Alternative Market, using data from the 2025–2026 period. The sample covered a wide range of company sizes—from very small listed firms to large conglomerates—which allowed for a comparative analysis of companies with different profiles and visibility.
The objective was to investigate whether the CEO’s brand recognition can influence the cost of equity—that is, the return investors require in order to invest their money in a company.
How the “CEO brand” is measured
To quantify the concept of the CEO brand, three key indicators were used: the CEO’s presence on social media, the frequency of mentions in the press, and the corresponding frequency in the mass media. In this way, the study sought to transform an inherently qualitative concept—reputation—into a measurable metric. These indicators were combined into a single composite recognition index to examine whether the most high-profile CEOs are associated with lower cost of capital.
At the same time, metrics reflecting each company’s financial position and profile were examined: market capitalization, net income, P/E ratio, P/B ratio, return on equity (ROE), and after-tax profitability.
The risk associated with each stock was also taken into account using the beta coefficient, as well as the five-year change in the stock price, in order to capture each company’s growth potential. Finally, characteristics of the CEO—gender, age, and years in the position—were included to examine whether experience and tenure are related to how the market values the company.
Key Characteristics of the Sample
The average market capitalization of the companies in the sample was 1.28 billion euros, the average cost of capital was 14.02%, and the average number of shareholders was 10,500. The average age of CEOs was 59 years, with an average tenure of 15 years. In terms of visibility metrics, the average number of social media followers was 2,800, and the average number of press mentions was 29.
The study was based on a sample of companies representing approximately 150 billion euros in market capitalization, in a market with a total market capitalization of 174 billion euros. This means that the study accounts for approximately 86% of total market capitalization, providing a highly representative picture of the Greek market for publicly traded companies.
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What the Analysis Revealed
At first glance, the comparison of CEO visibility and cost of equity revealed a slight negative correlation: companies with more “visible” CEOs appeared to have a slightly lower cost of equity. This relationship, however, was particularly weak and insufficient to draw firm conclusions.
​​The key finding emerged when company size was incorporated into the analysis. Larger publicly traded companies generally have more shareholders, a more extensive presence in the press, and CEOs with greater public visibility.
Thus, what initially appeared to be the “power of the CEO brand” turned out to be, to a large extent, simply a reflection of the company’s size. In other words, a CEO may be perceived as a strong brand not because his or her personal reputation reduces risk, but because the company he or she leads is already large, well-known, and institutionally significant.
Interpretation and Significance of the Finding
This finding challenges a fairly widespread business perception: that the personal visibility of management automatically translates into financial benefits for the company. The research shows that, at least in the Greek stock market, investors do not lower their required rate of return simply because a CEO is better known or more prominent.
​​​​On the contrary, the factors that most accurately explained the cost of capital were purely financial. Profitability, return on equity, and certain valuation metrics showed a much stronger correlation with the cost of capital than the CEO’s public image. Models based on these variables had significantly greater explanatory power than those using brand metrics.
Conclusion
The overall picture that emerges is clear: in the Greek market, CEO recognition does not function as an independent mechanism for reducing the cost of capital. Investors primarily evaluate the company’s financial metrics, risk, and prospects.
The reputation of leadership may play an important role in communication, public image, and overall trust in the company—but it does not appear, on its own, to substantially influence investors’ risk pricing.
At the same time, an important point to consider is the limited representation of female CEOs in the sample. At 6% of the sample, there are only 7 female CEOs, a fact that does not allow for reliable conclusions regarding whether the gender of leadership can influence the relationship between the CEO brand and the cost of capital.
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International literature suggests that the market may perceive publicity and visibility differently when they are associated with female CEOs. Therefore, if female representation at the top of publicly traded companies increases in the future, the issue of the CEO brand will be worth reexamining not only quantitatively but also qualitatively: not simply how well-known a CEO is, but how the market interprets that recognition.
Image, then, matters, but it is not enough on its own. The real question is whether companies can transform CEO branding from a promotional tool into a tool for building trust. That may well be the next stage of the discussion: not just whether a CEO is well-known, but whether the market can be convinced that this recognition actually reduces risk and enhances the company’s value.
(*) Th. Krintas (photo): Founder & CEO, Koubaras Ltd (a consulting firm specializing in succession planning) Adjunct Professor, Athens University of Economics and Business
(*) Michael Auxentiou Vlados: Junior Business Analyst, Koubaras Ltd