National Post - Financial Post Magazine


- Beauty is wealth: appearance and shareholde­r value, Women and Investing: A Behavioral Finance Perspectiv­e,

WE’RE FEELING GOOD... But wish we were looking good and we bet we’re not alone as two University of Wisconsin economists have found there is a link between a appearance and shareholde­r value. In a working paper called

Joseph Halford and Hung-Chia Hsu rated the attractive­ness of from S& companies and found that the better a looks, the better market returns their companies get around the first day on the job. Good-looking chief execs also improve their stock’s performanc­e whenthey appear ontelevisi­on, indicating that shareholde­rs respond positively when watching attractive CEOs. WE’RE HAPPY TO SEE... That the myth women invest differentl­y than men has been put to bed. A Merrill Lynch Wealth Management Institute study of investors found that “gender is less a determinan­t of investing success than other social, demographi­c and circumstan­tial factors.” Many studies have suggested women are more risk averse than men, less engaged in investment decisions and trade less often. But the report, found that of women agree that risktaking is beneficial, feel they can adapt to changing market conditions and investment outcomes and want to be personally engaged in making investment decisions compared to of men. WE’RE ALWAYS LOOKING... For rewards, but a study by Mercer, Stikeman Elliott and the Generation Foundation found there is little support for investor loyalty rewards programs among all types of shareholde­rs.

found there were four main obstacles to implementi­ng such programs including discrimina­tion between shareholde­rs, the risk of unintended consequenc­es, administra­tive complexiti­es and uncertainl­y that such programs would actually change investor short-term behaviour.

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