Gender and beauty in the financial analyst profession: evidence from the United States and China

Li, Congcong; Lin, An‐Ping; Lü, Hai; Veenstra, Kevin

doi:10.1007/s11142-020-09542-z

Cited by 48 publications

(32 citation statements)

References 35 publications

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“…[2019], Li et al. [2020]). We define ACCURACY_AFE as the negative of AFE and redo the table 2, column 4, regression.…”

Section: Robustness Analyses and Measurement Errorsmentioning

confidence: 99%

“…3 Examples include studies of borrower trustworthiness on loan terms (Duarte, Siegel, and Young [2012]), CEO competence on compensation (Graham, Harvey, and Puri [2017]), analyst beauty on forecast accuracy (Cao et al [2020], Li et al [2020]), and auditor trustworthiness on auditor tenure and audit fees (Hsieh et al [2020]). Another set of studies extracts trait impressions from body language using videos to examine entrepreneurial funding (Blankespoor, Hendricks, and Miller [2017], Huang et al [2020]; Hu and Ma [2020]).…”

Section: Introductionmentioning

confidence: 99%

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Face Value: Trait Impressions, Performance Characteristics, and Market Outcomes for Financial Analysts

Peng

Teoh

Wang

et al. 2022

J of Accounting Research

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Using machine learning–based algorithms, we measure key impressions about sell‐side analysts using their LinkedIn photos. We find that impressions of analysts’ trustworthiness (TRUST) and dominance (DOM) are positively associated with forecast accuracy, especially after recent in‐person meetings between analysts and firm managers. High TRUST also enhances stock return sensitivity to forecast revisions, especially for stocks with high institutional ownership. In contrast, the impression of analysts’ attractiveness (ATTRACT) is only positively associated with accuracy for new analysts or when a firm has a new CEO or CFO. Furthermore, while high DOM helps male analysts’ chances of attaining All‐Star status, it reduces female analysts’ accuracy and the likelihood of winning the All‐Star award. In addition, the relation between TRUST and accuracy is modulated by the disclosure environment and is attenuated by Regulation Fair Disclosure. Our results suggest that face impressions influence analysts’ access to information and the perceived credibility of their reports.

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“…[2019], Li et al. [2020]). We define ACCURACY_AFE as the negative of AFE and redo the table 2, column 4, regression.…”

Section: Robustness Analyses and Measurement Errorsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Face Value: Trait Impressions, Performance Characteristics, and Market Outcomes for Financial Analysts

Peng

Teoh

Wang

et al. 2022

J of Accounting Research

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“…Notes 1. Nevertheless, the latter relation between facial beauty and analyst performance could be moderated by culture and the legal environment (Li et al, 2020a).…”

Section: Discussionmentioning

confidence: 99%

“…Wong et al, 2011;Haselhuhn et al, 2013;Jia et al, 2014;He et al, 2019) and more objective than human ratings of interviewees or photographs (e.g. Hamermesh and Biddle, 1994;Graham et al, 2017;Cao et al, 2020;Li et al, 2020a).…”

Section: Introductionmentioning

confidence: 99%

CEO beauty and management guidance

Guo

Kim

et al. 2021

ARA

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PurposeThe authors study whether CEO beauty influences management guidance.Design/methodology/approachThe authors calculate an attractiveness score based on facial symmetry and perform regression analyses to examine the relation between CEO beauty and management guidance.FindingsThe 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.Originality/valueThese 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.

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“…As attractive analysts likely have greater access to the management, Cao et al (2020) and Peng et al (2021) find that analyst facial beauty is associated with improved forecast accuracy. Nevertheless, Li et al (2020) point out that such relation between facial beauty and analyst performance could be moderated by culture and the legal environment. Complementing these studies, we study the effect of CEO beauty on CEO compensation and firm performance.…”

Section: Introductionmentioning

confidence: 99%

CEO pulchronomics and appearance discrimination

Kim

Shi

Zhou

2021

ARA

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PurposePulchronomics 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/approachThe 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.FindingsThe 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/valueSince 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.

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Gender and beauty in the financial analyst profession: evidence from the United States and China

Cited by 48 publications

References 35 publications

Face Value: Trait Impressions, Performance Characteristics, and Market Outcomes for Financial Analysts

Face Value: Trait Impressions, Performance Characteristics, and Market Outcomes for Financial Analysts

CEO beauty and management guidance

CEO pulchronomics and appearance discrimination

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