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Purpose This study aims to clarify the conditions under which a CEO's celebrity status favors a company's credit rating. Building on upper echelons theory, the study includes other CEO attributes, such as political orientation, CEO tenure and age. Design/methodology/approach A sample of 209 publicly listed companies selected from the standard and poor's 500 index was used in this study. Fuzzy-set qualitative comparative analysis was applied to analyze the configurations that enhance a company's credit rating. Findings The findings indicate that both the presence and absence of CEO celebrity status can enhance companies' credit ratings, contingent on the presence or absence of other conditions. Conservative and non-celebrity CEOs tend to be perceived as more financially disciplined and strategically restrained-qualities viewed favorably by credit rating agencies. Conversely, celebrity CEOs – particularly those who are younger and at the beginning of their tenure, and have liberal orientations – may engage in more cautious financial strategies to safeguard their public image, which can likewise contribute to enhanced creditworthiness. Originality/value The contribution of this study lies in reconciling divergent perspectives on how celebrity CEOs influence credit ratings. In contrast with previous research, this study shows that both celebrity and non-celebrity CEOs can enhance credit ratings, contingent on certain conditions. Moreover, building on upper echelons theory, the study conceptualizes CEO celebrity as an expression of deeper psychological attributes – such as discretion and risk tolerance – rather than simply a product of media visibility.
Coelho et al. (Wed,) studied this question.