References (37)



Beauty is Wealth: CEO Appearance and Shareholder Value

Joseph Taylor Halford

University of Wisconsin Milwaukee

Scott H. C. Hsu

University of Wisconsin - Milwaukee

December 19, 2014

This paper examines whether and how the appearance of chief executives officers (CEOs) relates to shareholder value. We obtain a Facial Attractiveness Index of 667 CEOs based on their facial geometry. CEOs with a higher Facial Attractiveness Index are associated with better returns around their job announcements, and higher acquirer returns upon acquisition announcements. To mitigate endogeneity concerns, we compare stock returns surrounding news dates with CEOs’ images to returns surrounding news dates without CEOs’ images. Facial Attractiveness Index positively affects returns only around news dates with CEOs’ images. These findings suggest that CEO appearance matters for shareholder value.

Number of Pages in PDF File: 79

Keywords: CEO image, facial attractiveness, shareholder value, corporate news events

JEL Classification: G30, G34

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Date posted: November 21, 2013 ; Last revised: December 20, 2014

Suggested Citation

Halford, Joseph Taylor and Hsu, Scott H. C., Beauty is Wealth: CEO Appearance and Shareholder Value (December 19, 2014). Available at SSRN: http://ssrn.com/abstract=2357756 or http://dx.doi.org/10.2139/ssrn.2357756

Contact Information

Joseph Taylor Halford
University of Wisconsin Milwaukee ( email )
3203 N Maryland Ave
Sheldon B Lubar School of Business
Milwuakee, WI 53211
United States
Scott H. C. Hsu (Contact Author)
University of Wisconsin - Milwaukee ( email )
Bolton Hall 802
3210 N. Maryland Ave.
Milwaukee, WI 53211
United States
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References:  37

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