The Impact of CEO Facial Attractiveness on Company Decisions

With the transparency of the market and company systems, more and more scholars have included the chief executive officer (CEO) as an important part of company decision-making. The CEO is the company’s top manager and is responsible for formulating the company’s strategic plan and business development. Because of this, this paper takes CEO facial attractiveness as the research object to explore the CEO’s personality characteristics and the mediating role of internal and external factors in the company and conducts analysis based on the company background. Based on the content of the appeal, this paper draws the following conclusions. First: Analysis at the internal level of the company found that the facial attractiveness and personality of the CEO have an impact on corporate decision-making. This paper conducts an example analysis from two aspects: the CEO’s facial width-to-zygomatic ratio (Fwhr) and overconfident personality. The results show that decision-makers with a high fWHR ratio are more likely to have an overconfident personality. This overconfidence may lead them to overestimate their abilities, leading to more instability factors, such as wrong investment decisions and unclear risk control. Second, from the analysis of the external level of the enterprise, it is found that the company will face two decisive factors: market risk and financing decisions. Therefore, if a company has strong market capabilities, it can achieve greater profits. However, financing that is too high or too low may affect the company’s sound operations.