Facial Width-to-height Ratio Research Articles

CEO Facial Structure and Corporate Risk Taking

We examine the relationship between facial features of chief executive officers (CEOs) and corporate risk taking. We find that CEOs’ facial width-to-height ratio (WHR) is positively correlated with their tendency to make risky business decisions such as large investments in research and development projects and corporate acquisitions. Moreover, companies managed by CEOs with a higher facial WHR experience greater volatility in their annual financial performance. Overall, our results indicate that facial WHR, which has been shown to be positively associated with individuals’ sense of psychological power and levels of testosterone, is a valid predictor of risk taking by top executives.