Abstract

The rapid evolution of digital technology and social media has significantly influenced how organizations shape their marketing strategies. Influencer marketing, involving endorsements and product placements by individuals or organizations with substantial expertise or social influence, has become a key strategy for major brands such as Motorola, Adidas, and Pepsi (Hock and Raithel, 2020). Despite the prevalence of celebrity endorsements in advertising, which is noted to boost sales significantly in Western countries, risks associated with celebrities' misbehavior can lead to decreased credibility and lower consumer purchase intentions (Halder et al., 2021). Influencers, who often share personal aspects of their lives on social platforms, possess a unique capacity for social interaction and aesthetic presentation, enabling them to attract audiences by constructing personal narratives and identities. Communication through social media enhances the trust between audiences and influencers, which in turn fosters trust in the brands that these influencers endorse (Schuetz et al., 2024). However, the rapid spread of information and the frequency of sharing can exacerbate the negative impacts of any misbehavior, not only damaging the influencer's image but also harming the endorsed brands (Hock and Raithel, 2020). This study aims to explore the nuanced effects of influencer misbehavior on firm values and assess how cultural values (e.g., Venkatesh et al., 2022) and the extent of discussion polarization (e.g., Kitchens et al., 2020) might moderate these effects. Specifically, it addresses two research questions: 1) How does negative publicity about endorsers influence firm values? 2) How do cultural values and the degree of discussion polarization affect the relationship between negative endorser publicity and firm values? Ultimately, this paper seeks to identify various types of misbehaviors and their impacts on firm values and to examine the moderating roles of gender, cultural values, and the polarization of misbehavior. This analysis will contribute to a deeper understanding of the strategic considerations necessary for leveraging influencer marketing in a globally connected marketplace.

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