The present study aims to investigate the relationship between CEO s pre-existing reputation and his justifications for poor performance with investors’ judgment about future performance and CEO s current reputation in Iran. Using a questionnaire among non-professional in Tehran Stock Exchange, data were collected analyzed by Spearman and Man Whitney tests. The results indicate that from students viewpoints’ there is a negative relationship between CEO s pre-existing reputation and justifications for poor performance. The only difference between students and investors viewpoints is that from investors’ viewpoint there is not a relationship between CEO s explanations for poor performance and poor performance persistence. So far, only very few studies have been conducted on the subject of this study. On the other hand, difference between cultures may cause different findings. The current research is the first study in Iran.

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