Do Chief Customer Officers affect Firm Value? An Event Study
(A2025-126386)

AUTHORS

Inês Teixeira, KU Leuven; Yves Vaerenbergh, KU Leuven; Alexander Edeling, KU Leuven; Shuba Srinivasan, Boston University, Questrom School of Business

ABSTRACT

The number of Chief Customer Officers (CCO) is on the rise, growing over 1,000% between 2014 and 2019, according to Forrester. Yet, to date, there are no academic insights about this emerging role. We investigate the short-term stock market impact of CCO appointment announcements, using event-study methodology. Investors might perceive CCO appointments as positive (i.e., strengthening customer relationships) or negative (i.e., adding costs). We are the first to conceptualize the role of CCO and empirically assess market reactions, considering individual, role-specific, and contextual factors. Preliminary findings reveal no significant average abnormal returns across announcements, but considerable variability. Strikingly, we identify a significant negative effect for service firms, suggesting investors may react unfavorably in these contexts. These findings underscore the need to study the complexities of investors’ responses and its nuanced implications for this executive role.