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CEO facial structure and stock price crash risk

Author

Listed:
  • Zunxin Zheng
  • Donghui Li
  • Tingyong Zhong
  • Tian Wang
  • Ling He

Abstract

This study conducted an empirical analysis of a manually collected sample of chief executive officer (CEO) facial structure measurements (facial width‐to‐height ratio [FWHR]) to examine the relationship between FWHR and stock price crash risk. The samples were collected for the period 2008–2019 from Chinese A‐share listed firms. The results revealed a positive impact of FWHR on stock price crash risk. The positive impact is more pronounced for firms in which CEOs are entrusted with greater powers, firms that appoint a higher number of independent directors, or which function in a more competitive product market. Various robustness and endogeneity tests confirm our main conclusions.

Suggested Citation

  • Zunxin Zheng & Donghui Li & Tingyong Zhong & Tian Wang & Ling He, 2023. "CEO facial structure and stock price crash risk," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(S1), pages 873-905, April.
    • Handle: RePEc:bla:acctfi:v:63:y:2023:i:s1:p:873-905
    DOI: 10.1111/acfi.13069
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