Eric Lee

Drawing from media routines and narrative theory research, we theorize that benefits spill over to competitors who are cognitively linked to a celebrity via media narratives. Specifically, we argue that actors with direct competitive relationships with a celebrity will receive increased media attention and emotive media content, as well as increased performance. Due to the nature of these narratives, we further argue that this effect continues into periods after the direct relationship has ended. We test our hypotheses using a novel, eight-year data set from the Ultimate Fighting Championship. Our findings support our theoretical arguments, providing evidence on how celebrities benefit others in ways that other social evaluation assets—namely, high reputation and high status—do not.

Fit is an essential consideration for organizations, and extensive research has explored its various types. We build on and extend fit research by advancing an important form of fit—organization‐investor (O‐I) fit, which reflects the compatibility between an organization and its investors. We argue that investors tend to be attracted to organizations whose preferences already “fit” their own and, in so doing, provide a relational perspective to the corporate governance literature that often views the relationship between investors and organizational managers as purely transactional. We focus on the fit of one of the most important factors shaping both organizational and investor behavior––temporal preferences. Specifically, we argue that investors are attracted to firms that fit with their temporal preferences and that high O‐I fit leads to better organizational performance. We tested our hypotheses in a longitudinal archival study of S&P 500 firms and supplemented these findings with two experiments. Together, we find strong support for our hypotheses. Our study showcases the critical role of O‐I fit in shaping the makeup of an organization's investors and its subsequent performance, suggesting the value for scholars, managers, and investors to consider the mutual benefits offered by fit in these relationships.