Good looks can take you far

Hsu and Halford find out if the company CEO’s appearance has a positive impact on shareholder value

That good looks can work in employees’ favour in the corporate world has been one of the more popular urban legends in recent times. But does this premise actually work in favour of the employer as well, if not directly then indirectly? Researchers Scott HC Hsu and Joseph Taylor Halford compared the facial attractiveness index of over 600 S&P 500 company CEOs and found that the more attractive the CEO, the higher the stock returns when he or she takes charge. In case of acquisition announcements, good-looking CEOs raked in higher acquirer returns for the company as well. Hsu and Halford theorise that the company CEO’s appearance seems to have a positive impact on shareholder value, which could explain why good-looking ones get compensated more than adequately.


Title: Beauty is Wealth: CEO Appearance and Shareholder Value

Source: Social Science Research Network


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