The Effect of CEO Public Behaviour on the Company’s Valuation: The Case of Tesla and Elon Musk
Abstract
We evaluate the hypothesis that CEO public behaviour affects their firms’ value by considering Tesla and Elon Musk. Several events involving public controversies by Elon happened from mid-October to early December 2023. In this period, Elon Musk was involved in controversies over erratic statements. Therefore, we evaluate its effect on Tesla’s valuation. We use high-frequency data since traditional event study is inefficient. We consider two jump test: the price test by Lee and Mykland and volatility test by Barndorff-Nielsen and Shepard. We find evidence of jumps in both following Elon controversies, indicating that investors consider alternative data in Tesla’s valuation.
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Recommended citation
Kvist, O., and Vera-Valdés, J.E. (2024). “The Effect of CEO Public Behaviour on the Company’s Valuation: The Case of Tesla and Elon Musk.” DOI: 10.2139/ssrn.4734037
@article{KVIST2024,
title = {The Effect of CEO Public Behaviour on the Company's Valuation: The Case of Tesla and Elon Musk},
year = {2024},
author = {Kvist, O., and Vera-Valdés, J.E.},
url = {https://ssrn.com/abstract=4734037},
doi = {10.2139/ssrn.4734037}
}