The <scp>CEO</scp> beauty premium: Founder <scp>CEO</scp> attractiveness and firm valuation in initial coin offerings

Research summary We apply insights from research in social psychology and labor economics to the domain of entrepreneurial finance investigate how founder chief executive officers' (founder CEOs') facial attractiveness influences firm valuation. Leveraging novel context initial coin offerings (ICOs), we document a pronounced CEO beauty premium, with positive relationship between find only very limited evidence stereotype-based evaluations, through association latent traits such as competence, intelligence, likeability, or trustworthiness. Rather, seems bear economic value per se, especially which investors base their decisions on information set. Indeed, has sustainable effect post-ICO performance. Managerial ICOs allow ventures collect funding using blockchain technology. leverage this context, future prospects is scarce, empirically whether CEOs' physical associated increased (i.e., amount raised) post-funding performance buy-and-hold returns). that more attractive CEOs outperform less both dimensions. For ICO investors, suggests firms are appealing investment targets. Our findings also interesting for startups seeking external uncertain contexts, ICOs. If can appoint leaders, they may have better access growth capital.