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Paper Number

1667

Paper Type

Short

Description

Facial expressions have been seen as one of the most instinctive and efficient ways in the form of nonverbal communication. The CEO provides important facial information during the interview, which links to the firm's current market situation and future planning. In the literature, few studies have examined the relationship between CEO interview facial expressions and firm performance. This study explores how CEOs' facial emotions impact firm market value by analyzing the interview videos from the YouTube platform. We use the FER, a CNN algorithm-based method, to establish facial emotions and build multiple regression models to predict the firm's market value. Our findings show that CEO's negative emotion has a significant negative impact on market value. A positive emotional swing has a positive impact on the stock price. The high CEO’s emotional swing affects investors’ confidence in the firm performance and reflects on the stock price.

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Dec 12th, 12:00 AM

Influence of CEO’s Facial Emotions in Interview Videos on Firm Market Value

Facial expressions have been seen as one of the most instinctive and efficient ways in the form of nonverbal communication. The CEO provides important facial information during the interview, which links to the firm's current market situation and future planning. In the literature, few studies have examined the relationship between CEO interview facial expressions and firm performance. This study explores how CEOs' facial emotions impact firm market value by analyzing the interview videos from the YouTube platform. We use the FER, a CNN algorithm-based method, to establish facial emotions and build multiple regression models to predict the firm's market value. Our findings show that CEO's negative emotion has a significant negative impact on market value. A positive emotional swing has a positive impact on the stock price. The high CEO’s emotional swing affects investors’ confidence in the firm performance and reflects on the stock price.

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