The moderating role of CEO race on the relationship between CEO masculinity and company financial performance

The paper investigates the moderating effect of CEO race on the relationship between CEO masculinity and company performance. The sample includes 260 companies listed on the Bursa Malaysia for the period from 2009 to 2019. Data extracted for 405 unique CEOs from different races (Malay, Chinese, Indian, and others). The paper uses two indicators of CEO masculinity, facial width-to-height ratio (fWHR) and testosterone level (Tsh). The fWHR of CEOs is measured using artificial intelligence (Python code/c). In addition, a contemporary model is applied to estimate Tsh based on face measures and CEO age. The results indicate that CEO race moderates the relationship between masculinity and company performance. The findings reveal that high masculinity is positively associated with company performance only among the non-Bumiputera group, however, there is no significant evidence among the Bumiputera group. This study uniquely links CEO characteristics and financial performance with neuro finance and biological aspects. Therefore, this study offers novel contributions to literature and implications for investors, board members, policymakers, and academicians.