ORIGINAL ARTICLE
Beauty is wealth: CEO attractiveness and firm value
Joseph T. Halford, Hung-Chia S. Hsu,
Corresponding Author
Hung-Chia S. Hsu
University of Arkansas Fayetteville, Fayetteville, Arkansas
Correspondence
Hung-Chia Hsu, University of Arkansas Fayetteville, Fayetteville, AR.
Email: SHsu@walton.uark.edu
Search for more papers by this authorJoseph T. Halford, Hung-Chia S. Hsu,
Corresponding Author
Hung-Chia S. Hsu
University of Arkansas Fayetteville, Fayetteville, Arkansas
Correspondence
Hung-Chia Hsu, University of Arkansas Fayetteville, Fayetteville, AR.
Email: SHsu@walton.uark.edu
Search for more papers by this authorAbstract
This paper examines whether and how CEO attractiveness relates to firm value. We construct a Facial Attractiveness Index of 667 CEOs based on their facial geometry. More attractive CEOs are associated with better stock returns surrounding their job announcements and around earnings-announcement news with CEOs' images. Further, more attractive CEOs are related to higher acquirer returns following acquisition announcements and higher Tobin's Q. Finally, consistent with the existing literature documenting the beauty premium in pay, more attractive CEOs receive higher compensation.
Supporting Information
| Filename | Description |
|---|---|
| fire12234-sup-0001-SuppMat.pdf179.4 KB |
Table A.1: Facial Attractiveness Index and survey-based measures Table A.2: Correlation matrix for the main sample Table A.3: Correlation for CEO job announcements Table A.4: Correlation matrix for earnings news with CEOs' images Table A.5: Correlation matrix for earnings news without CEOs' images Table A.6: Correlation matrix for M&A announcements Table A.7: Correlation matrix for panel regressions |
Please note: The publisher is not responsible for the content or functionality of any supporting information supplied by the authors. Any queries (other than missing content) should be directed to the corresponding author for the article.
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