CEO Facial Masculinity and Bank Risk-Taking
Personality and Individual Differences, Vol. 138, pp. 133-139, 2019
29 Pages Posted: 14 Jun 2018 Last revised: 27 Mar 2020
Date Written: September 14, 2018
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: Suggested Citation