CEO pulchronomics and appearance discrimination
ISSN: 1321-7348
Article publication date: 10 August 2021
Issue publication date: 13 August 2021
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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.
Originality/value
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.
Keywords
Acknowledgements
The authors thank helpful comments from Haiyan Zhou (editor), an anonymous reviewer, Andrea Pawliczek, Francis Yammarino, and workshop participants at Bowling Green State University, Hofstra University, Ithaca College, Oakland University, Rowan University, Rutgers University at Camden, Saint Joseph University, San Francisco State University, SUNY at Binghamton, University of Cincinnati, University of Nevada at Reno, the 2016 American Accounting Association (AAA) Northeast Region Meeting in Boston, and the 2017 AAA Annual Meeting in San Diego.
Citation
Kim, J.Y.(J)., Shi, L. and Zhou, N. (2021), "CEO pulchronomics and appearance discrimination", Asian Review of Accounting, Vol. 29 No. 3, pp. 443-473. https://doi.org/10.1108/ARA-06-2021-0115
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited