Search results

Pulchronomics studies the economics of beauty. The purpose of this paper is to research CEO pulchronomics by examining whether a beauty premium exists in CEO compensation and whether this beauty premium is justified by differences in CEO performance.

The authors calculate a facial attractiveness scores (FAS) based on facial symmetry, facial structure and the golden ratio. The authors then perform OLS regressions to examine the effect of CEO beauty on CEO compensation and firm performances.

The authors find that base salaries for attractive CEOs are higher than those for unattractive CEOs, but incentive pays for attractive CEOs are not different from those for unattractive CEOs. The latter is likely due to the fact that attractive CEOs do not outperform unattractive CEOs in operations, innovation, corporate social responsibility and financial reporting quality.

Since the CEO beauty premium is not supported by the superior performance of attractive CEOs, this paper provides new evidence of appearance discrimination in CEO compensation.

The paper aims to explore the processes by which individuals make attributions about a leader's personality and effectiveness based upon information contained within a photograph of a leader's face.

A mixed methodology approach is taken which combines an individual survey with a follow‐up focus group conducted with five classes of MBA students. In the survey, respondents were asked to rate the photographic images of ten CEOs for personality traits and leadership effectiveness that were apparent in the face; in the focus group, they were asked to reflect upon the processes they had utilized in order to make their attributions.

The study demonstrated that the vast majority of the participants actively used the face to attribute personality traits of the leaders as well as their ability to lead. The survey revealed that perceived leadership effectiveness was positively correlated to perceived extraversion, agreeableness, openness, conscientiousness, and narcissism. The focus group revealed three strategies that were used when placing these attributions on a leader. These were drawing on explicit facial traits, using the leader's non‐facial traits and general appearance, and telling stories about the leader.

This was an exploratory study set up in an artificial laboratory‐like environment featuring a limited and homogenous collection of CEO photographs and involving a limited and relatively homogenous group of participants. However, it does show that the face is an important and rich source of information from which individuals can make detailed attributions about a leader's personality and their potential leadership ability. The functionality of making such attributions as well as its moral and ethical basis needs to be properly examined and discussed.

The study highlights the leader's face and the visual portrayal thereof, as a potentially important, yet rarely analyzed, aspect of leadership. It foregrounds photographs of leaders, most notably those taken of CEOs, as organizational artifacts that have been largely ignored but worthy data sources. Leadership scholars could profitably focus upon both the production and consumption processes associated with the visual portrayal of leadership.

The purpose of this paper is to investigate the ability of head-and-shoulder photos of CEOs appearing in a publicity item to influence reader regard for the corporation linked to the CEO.

Study 1 investigated three factors, face of a male CEO (trustworthy versus less trustworthy), headline framing of a corporate merger (tax-dodge vs specialization strategy) and respondent gender, whereas Study 2 explored two factors, face of a CEO (male vs female) and headline framing. The primary dependent variable was respondent regard for the firm.

Study 1 resulted in a significant three-way interaction. Face of a male CEO moderated a two-way interaction between the gender and the headline. Women, as compared with men, responded particularly unfavorably to the combination of an untrustworthy face and a tax-dodge headline. In Study 2, a firm headed by a male CEO and engaged in a tax-dodge action was poorly regarded, whereas a firm headed by a female CEO pursuing the same action did not suffer a loss of regard.

Only one framing device (headlines) was studied when there are multiple such devices. Also, overall regard for the firm is influenced by multiple factors.

Of the factors investigated (facial image, headline and reader gender), only one is controlled by the corporation – the image of the spokesperson presented to the media. Findings suggest less downside risk to reputation if the company uses only trustworthy-looking spokespersons. Also, a female CEO may be a reputational asset. Women reported significantly more positive feelings toward a corporation headed by a female CEO than a male CEO.

The purpose of this paper is to outline and discuss the main elements of the chief executive officer (CEO) that affect financial and non-financial aspects of companies. CEO reputation and corporate reputation and performance are intertwined concepts. It presents a conceptual framework, the “4Ps of the CEO branding mix”, and shows how they individually and collectively influence company reputation and performance.

An extensive inter-disciplinary research was conducted. Four primary elements of the CEO (performance, personality, prestige and persona) were identified that positively or negatively impact companies.

CEO reputation (prestige) can not only positively but also negatively impact companies and celerity CEO’s are no different. There are certain personality traits, such as honesty and humility, which are mostly associated with positive company outcomes, while other personality traits, such as machiavellianism and narcissism, seems to negatively impact companies. Certain aspects related to the CEO as a persona, such as CEO tenure (experience) and education, and also CEO’s physical appearance and facial expressions impact CEO’s image and, subsequently, company reputation and performance. Finally, this paper shows that CEO performance is more than company financial and market performance and includes aspects such as strategy execution or CEO succession planning.

The four ′P’s of the CEO branding mix provide a useful framework for CEO’s and the corporate communications department to developing a consistent and comprehensive CEO and corporate communication and branding strategy.

This paper contributes as it outlines the various aspects and elements which impact CEOs image and reputation. The four P’s serve as a useful framework for CEO’s as well as corporate communication departments to systematically measure and manage the CEO’s image and reputation and, consequently, company reputation and performance. It forms the basis for developing a consistent and comprehensive CEO and company communication and branding strategy.

One explicit leadership role the chief executive officer (CEO) can play during crisis is to assume the role of being the organization's spokesperson. What remains unclear is at what point of the crisis should the CEO step up and how does that impact crisis communication? The purpose of this paper is to examine this question.

The meta‐analysis method is used to combine different data in various studies of one topic into one comprehensive study. More than 30 crises are meta‐analyzed.

The CEO needs to step up to revise earlier statements or when the integrity of the organization is questioned. Additionally, the CEO should step up at the beginning of the crisis if the crisis pertains to organizational transgression or when the crisis becomes unbearable to organizational reputation. As counter‐intuitive as it may, CEOs should refrain from stepping up at the height of the crisis.

It is an exploratory study. Some cases have lesser information to analyze than others.

Instructive for both corporate communications practitioners and CEOs as they have a framework to guide them on when the CEOs should step up, and when the presence of corporate communications would suffice.

Little has been studied to clarify the exact nature, role, and impact of the CEO as organization spokesperson in crises. This paper provides the initial template.

The importance of CEOs (chief executive officers) is not to be underestimated and this paper seeks to identify the problems in law of definition and thus liability of CEOs.

This paper draws upon the legislative and judicial experiences of China and compares them to those of the USA.

Since an owner and a manager become “the principal‐agent relationship” in the enterprise, the manager's “moral venture question” is inevitable. With the development of corporate governance structure, CEOs appear, thus people begin to take care of CEOs’ legal status and legal liability. A CEO has not only a manager's authority of office, but also some part of authorities of board of directors and president, so a CEO's legal position is higher than that of a manager. Because the questions caused by CEOs are increasing, it is necessary for us to draw lessons from American Corporate Law Reform, to revise our Corporate Law, to make definite CEOs’ legal status and to strengthen CEOs’ legal liability.

The findings will hopefully influence reform and development in this area in China.

The authors study whether CEO beauty influences management guidance.

The authors calculate an attractiveness score based on facial symmetry and perform regression analyses to examine the relation between CEO beauty and management guidance.

The authors find that attractive CEOs are more likely to issue voluntary management earnings guidance. After controlling for this appearance-based self-selection, the authors document that management forecasts provided by attractive CEOs are more optimistic yet less precise. Consistent with this result, the authors find that analysts' consensus forecast error following management forecasts made by attractive CEOs is larger than such error following management forecasts made by unattractive CEOs. The authors further find that the perceived credibility of management forecasts by attractive CEOs is not different from that by unattractive CEOs.

These findings suggest that attractive CEOs are more active but less skillful in issuing management forecasts. This adds to the emerging accounting literature on the relation between facial appearance and information delivery.

In this paper the authors aim to argue that the existence of a strong corporate governance mechanism (a formal credibility-enhancing mechanism) and the presence of a more trustworthy-looking CEO (an informal credibility-enhancing mechanism) are substitutes.

By using machine-learning-based facial-feature-point detection technique, the authors construct a proprietary facial-trustworthiness database for a large-scale of CEOs in the US listed companies. First, the authors manually search for qualifying CEO image from websites and annual reports. Second, by following the neuroscience and psychology literature, the authors use the machine-learning-based face detector to identify the facial features in the CEO photos to calculate a rich and reliable set of facial-trustworthiness measures. The authors then construct a composite facial-trustworthiness index for each CEO. After obtaining accounting data, the authors’ final sample comprises 16,201 firm-year observations for 3,186 CEOs in the sample period of 2000-2018.

The results of the authors’ regression analyses show a negative association between board monitoring intensity and CEOs' facial trustworthiness, indicating that board directors may factor CEOs' facial trustworthiness into their monitoring decisions. Moreover, the authors find that these results are mainly driven by CEOs whose tenure is below the third quartile (i.e. eight years). The authors further find stronger results for externally hired CEOs than internally promoted CEOs. Finally, the authors’ results remain robust when using change models or subsample of CEO photos in recent years.

First, to the best of the authors’ knowledge, this is the first study that adopts a large sample to provide systematic evidence on the directors' use of facial trustworthiness. This study extends the literature by documenting the impacts of CEOs' individual characteristics on the board monitoring intensity. Second, the results of this study emphasized the important role of perceptions based on executives' facial appearance in firm valuation, executive compensation and audit fee, and by presenting empirical evidence that CEOs' facial trustworthiness affects board monitoring intensity. Third, this study responds to the call for research on personalized trust by Hsieh et al. (2020).

This paper aims to model and estimate how celebrity chief executive officers (CEOs) credibility (i.e. expertise, trustworthiness, attractiveness) is related to their brand image (i.e. functional, sensory/visual). This paper further examines the effects of consumer materialism on both celebrity CEOs’ credibility and the image of their brand.

A total of 260 participants knowledgeable of CEOs and their corresponding brands completed an online questionnaire in a cross-sectional study. The data were analyzed through covariance-based structural equation modeling.

Celebrity CEOs’ expertise and attractiveness are positively related to both functional and sensory/visual images of their brands. Results also demonstrate the positive effect of materialism on both celebrity CEOs’ credibility and brand image.

The research was conducted in one country (France) using a cross-sectional design. Additional studies in other settings or countries should be carried out to establish the generalizability of results and strengthen causality inferences.

CEOs need to understand and manage their key role as celebrities, given the direct influence they may have on consumer brand perceptions and behavior.

This study refines the relationship between celebrity CEOs’ credibility and brand image. It is the first to introduce and validate the effect of consumer materialism on the perception of celebrity CEOs.

Because conventional financial reporting failed to prevent savings and loans crisis of 1988, the market value concept became popular. To see if CEO changes affect “how much companies are worth if sold” Fortune 500 corporations were examined from 1997 to 2002. The findings show that companies with CEO changes see significant market value drops during the year of and especially year after CEO changes (i.e. when compared to benchmark) due to asset “write‐downs”. Yet, while there are no differences in market value shifts for the CEO change versus benchmark companies during the second and third years after CEO changes, asset reductions by new CEOs take place during their first and second years. The results suggest that executives looking for bargains on assets should target competitors with recent CEO changes, and new CEOs in their zeal to get clean slates should carefully liquidate “questionably productive” assets to prevent hostile takeovers.