CEO Facial Masculinity and Bank Risk-Taking

Personality and Individual Differences, Forthcoming

29 Pages Posted: 14 Jun 2018 Last revised: 16 Oct 2018

See all articles by Shaker Ahmed

Shaker Ahmed

University of Vaasa

Jukka Sihvonen

Aalto University

Sami Vähämaa

University of Vaasa

Date Written: September 14, 2018

Abstract

This paper uses Chief Executive Officer (CEO) facial features to examine the association between CEO masculinity and bank risk-taking. Given that high facial width-to-height ratio has been linked to high testosterone levels and masculine behavioral traits such as increased risk tolerance, aggression, and sensation seeking, we postulate a positive relationship between CEO facial masculinity and bank risk-taking. Consistent with this prediction, we document that banks led by CEOs with more masculine facial features are associated with more volatile stock returns and higher levels of idiosyncratic risk.

Keywords: CEO Masculinity, Facial Width-to-Height Ratio, fWHR, Bank Risk-Taking

JEL Classification: G01, G21, G30, G32

Suggested Citation

Ahmed, Shaker and Sihvonen, Jukka and Vähämaa, Sami, CEO Facial Masculinity and Bank Risk-Taking (September 14, 2018). Personality and Individual Differences, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3186072 or http://dx.doi.org/10.2139/ssrn.3186072

Shaker Ahmed

University of Vaasa ( email )

P.O. Box 700
Wolffintie 34
FIN-65101 Vaasa, FI-65101
Finland

Jukka Sihvonen

Aalto University ( email )

P.O. Box 21210
Helsinki, 00101
Finland

Sami Vähämaa (Contact Author)

University of Vaasa ( email )

P.O. Box 700
Vaasa, FI-65101
Finland
+358 29 449 8455 (Phone)

HOME PAGE: http://www.uva.fi/~sami

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