The face of risk : CEO facial masculinity and firm risk
We examine whether a male CEO's facial masculinity, measured by facial width-to-height ratio (fWHR), predicts the riskiness of his firm. Using the face pictures of 1,162 CEOs in the Execucomp database, we find supporting evidence. Firms with more masculine-faced CEOs have higher stock return vo...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
| Published: |
2020
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10356/142906 |
| _version_ | 1826117050344407040 |
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| author | Kamiya, Shinichi Kim, Andy Y. Han Park, Soohyun |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Kamiya, Shinichi Kim, Andy Y. Han Park, Soohyun |
| author_sort | Kamiya, Shinichi |
| collection | NTU |
| description | We examine whether a male CEO's facial masculinity, measured by facial width-to-height ratio (fWHR), predicts the riskiness of his firm. Using the face pictures of 1,162 CEOs in the Execucomp database, we find supporting evidence. Firms with more masculine-faced CEOs have higher stock return volatility and higher financial leverage and are more acquisitive. Their frequency of acquisitions, the dollar amount spent on acquisitions, and the takeover premium are all higher. We find that more masculine-faced CEOs’ compensation is more sensitive to the risk of the firm. The result is robust when we use AI (artificial intelligence)-measured fWHR of the CEOs. |
| first_indexed | 2024-10-01T04:21:25Z |
| format | Journal Article |
| id | ntu-10356/142906 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T04:21:25Z |
| publishDate | 2020 |
| record_format | dspace |
| spelling | ntu-10356/1429062023-05-19T07:31:15Z The face of risk : CEO facial masculinity and firm risk Kamiya, Shinichi Kim, Andy Y. Han Park, Soohyun Nanyang Business School Business::General CEO FWHR We examine whether a male CEO's facial masculinity, measured by facial width-to-height ratio (fWHR), predicts the riskiness of his firm. Using the face pictures of 1,162 CEOs in the Execucomp database, we find supporting evidence. Firms with more masculine-faced CEOs have higher stock return volatility and higher financial leverage and are more acquisitive. Their frequency of acquisitions, the dollar amount spent on acquisitions, and the takeover premium are all higher. We find that more masculine-faced CEOs’ compensation is more sensitive to the risk of the firm. The result is robust when we use AI (artificial intelligence)-measured fWHR of the CEOs. Accepted version 2020-07-08T02:47:09Z 2020-07-08T02:47:09Z 2018 Journal Article Kamiya, S., Kim, A. Y. H., & Park, S. (2019). The face of risk : CEO facial masculinity and firm risk. European Financial Management, 25(2), 239-270. doi:10.1111/eufm.12175 1354-7798 https://hdl.handle.net/10356/142906 10.1111/eufm.12175 2-s2.0-85047451653 2 25 239 270 en European Financial Management This is the accepted version of the following article: Kamiya, S., Kim, A. Y. H., & Park, S. (2019). The face of risk : CEO facial masculinity and firm risk. European Financial Management, 25(2), 239-270, which has been published in final form at http://dx.doi.org/10.1111/eufm.12175. This article may be used for non-commercial purposes in accordance with the Wiley Self-Archiving Policy [https://authorservices.wiley.com/authorresources/Journal-Authors/licensing/self-archiving.html]. application/pdf |
| spellingShingle | Business::General CEO FWHR Kamiya, Shinichi Kim, Andy Y. Han Park, Soohyun The face of risk : CEO facial masculinity and firm risk |
| title | The face of risk : CEO facial masculinity and firm risk |
| title_full | The face of risk : CEO facial masculinity and firm risk |
| title_fullStr | The face of risk : CEO facial masculinity and firm risk |
| title_full_unstemmed | The face of risk : CEO facial masculinity and firm risk |
| title_short | The face of risk : CEO facial masculinity and firm risk |
| title_sort | face of risk ceo facial masculinity and firm risk |
| topic | Business::General CEO FWHR |
| url | https://hdl.handle.net/10356/142906 |
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