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.
| Original language | English |
|---|---|
| Pages (from-to) | 133-139 |
| Number of pages | 7 |
| Journal | Personality and Individual Differences |
| Volume | 138 |
| DOIs | |
| Publication status | Published - 1 Feb 2019 |
| MoE publication type | A1 Journal article-refereed |
Keywords
- Bank risk-taking
- CEO masculinity
- Facial width-to-height ratio
- fWHR
- Testosterone