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Dictators’ facial characteristics and foreign direct investment
Institution:1. LEM (UMR 9221), University of Lille, France;2. Sciences Po Grenoble, Université Grenoble Alpes, CESICE, France;3. EM Strasbourg Business School, University of Strasbourg, France;4. Moscow State Institute of International Relations (MGIMO University), Russia;1. Department of Management, G. Brint Ryan College of Business, University of North Texas, Denton, TX 76201, United States;2. School of Business, University of Northern British Columbia, Prince George, BC V6T 1Z4, Canada;1. Melbourne Business School, University of Melbourne, 200 Leicester Street, Carlton, Victoria 3053, Australia;2. Department of Management and Marketing, Faculty of Business Administration, University of Macau, E22, Avenida da Universidade, Taipa, Macau;3. Organisational Behaviour and Human Resources, Lee Kong Chian School of Business, Singapore Management University, 50, Stamford Road, 178899 Singapore, Singapore;4. Kravis Leadership Institute, Claremont McKenna College, Claremont, CA 91711, United States;1. UWA Business School, University of Western Australia, 35 Stirling Highway (M261), 6009 Perth, Australia;2. Department of Management, Monash Business School, Monash University, 900 Dandenong Rd (N7.32), Caulfield East, VIC 3145, Australia;3. WHU Otto Beisheim School of Management, Burgplatz 2 (D-221), D-56179 Vallendar, Germany;1. Culverhouse College of Business, University of Alabama, 361 Stadium Drive, Tuscaloosa, AL 35487, United States;2. Villanova School of Business, Villanova University, Villanova, PA 19085, United States;3. Department of Management, Culverhouse College of Business, University of Alabama, 361 Stadium Drive, Tuscaloosa, AL 35487, United States
Abstract:This paper investigates whether foreign direct investment (FDI) inflows are higher in countries ruled by trustworthy-looking or competent-looking leaders. After collecting pictures of 276 nondemocratic leaders in office between 1975 and 2010, we use a computer-based survey to assess how these faces are spontaneously perceived by ordinary people for trustworthiness and competence. We perform regression analysis to evaluate the relationship between leaders’ facial characteristics and FDI inflows. We find that competent-looking leaders attract more FDI inflows. However, there is no evidence that trustworthy-looking leaders attract more FDI inflows.
Keywords:Foreign direct investment  Authoritarian regimes  First impressions from faces  Political risk
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