Does Investors’ Facial Attractiveness Affect Investments in Financial Assets?

Abstract

This paper explores the relationship between investors’ facial attractiveness and investments in financial assets utilizing data from the China Family Panel Studies （CFPS）and applies the method of path analysis to study the specific mechanism. The research reveals that the facial attractiveness of investors contributes to investing in financial assets. Path analysis indicates that good looks can encourage investments in financial assets by enhancing investor’s confidence and risk preference respectively. The heterogeneity analysis suggests that the contribution of facial attractiveness to investments in financial assets is more significant for female investors and those with lower academic qualifications.

Keywords: Facial attractiveness, Confidence, Investments in Financial Assets, Risk Preference