SKKU Professor Young Han KIM’s research entitled “The Face of Risk: CEO’s Facial Masculinity and the Risk of the Firm” which was presented at the American Finance Association convention held in January of this year, was introduced at the TV Show “Making Sense” by PBS on May 25th.
Public Broadcasting Service (PBS) is the most prominent provider of television programming to public television stations in the US, and it is categorized as one of the six major commercial broadcasting networks together with NBC, CBS, ABC, etc.
“There is a strong link between facial masculinity and risk taking behavior,” said Prof. KIM who is now exploring the possible link between CEO risk taking and the male hormone testosterone. In the research, the ratio of facial width-to-Height Ration (fWHR), a sculpt measurement technique developed by archaeologist has been proposed as a proxy for masculinity according to the theory that it is influenced by exposure to testosterone. The hypothesis is that an individual is more masculine if they have a wider face.
Also, Prof. KIM found out that the typical ratio of fWHR in men is 1.83, but the average score for 1,162 CEOs measured by neutral 3rd parties was significantly higher than 2.0. This presents evidence that if a CEO has a wider the face, they may have a higher correlation with risk taking which may lead to more mergers and acquisitions.
Prof. KIM has also begun to study the relationship between the vocal pitch and testosterone; at any given age, the lower the pitch, the higher the testosterone.
In the episode of the program, Prof. Jennifer Lerner’s (Harvard Kennedy School of Government) study on the “Influence that Masculinity Has on the Company Culture and Risk taking” was also aired.
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