Using a sample of Dutch advertising firms, we find that those with better-l
ooking executives have higher revenues. Impacts on revenue far exceed the l
ikely effects of beauty on the executives' earnings. This suggests that bea
uty creates firm-specific investments, with the returns shared by the firm
and the executive. (C) 2000 Elsevier Science S.A. All rights reserved. JEL
classification: J7.