CEO NARCISSISM AND INCUMBENT RESPONSE TO TECHNOLOGICAL DISCONTINUITIES

The present study investigates the relationship between management characteristics (managerial entrenchment, CEO narcissism, overconfidence, board effort, real and accrual-based earnings management) and the audit report readability of listed firms. In other words, this paper seeks to answer the question of “whether management characteristics can have a favourable effect on the audit report readability or not.” The multivariate regression model is used for this study. Research hypotheses were also examined using a sample of 1004 observations on the Tehran Stock Exchange during 2012–2018 and by employing multiple regression patterns based on a panel data technique and fixed effects model. The results show a negative and significant relationship between managerial entrenchment and real and accrual-based earnings management and the audit report readability, based on the FOG index, and a positive and significant relationship between management narcissism, CEO overconfidence, and board effort and the audit report readability, based on the FOG index. Moreover, a negative and significant relationship exists between management entrenchment, CEO overconfidence, real and accrual-based earnings management, and audit report readability based on text length and Flesch indices. A positive and significant relationship was evident between CEO narcissism and board effort and audit report readability based on the same indices. Besides, research models were also examined for more confidence using other additional methods, including FE, T + 1, ABB, and GMM, which confirm the study’s preliminary results. Since the present study is the first paper to investigate such a topic in the emergent markets, it provides valuable information about intrinsic and acquisitive characteristics of management for users, analysts, and legal institutions that contribute significantly to financial statement readability.

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Impact of CEO Narcissism and Hubris on Corporate Sustainability and Firm Performance

The North American Journal of Economics and Finance ◽

10.1016/j.najef.2021.101586 ◽

2021 ◽

pp. 101586

Author(s):

Fengyi Lin ◽

Sheng-Wei Lin ◽

Wen-Chang Fang

Keyword(s):

Firm Performance ◽

Corporate Sustainability ◽

Ceo Narcissism

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The Impact of CEO Narcissism and Counterproductive Work Behaviors in Involvement of Middle Managers in the Strategy Process

International Journal of Customer Relationship Marketing and Management ◽

10.4018/ijcrmm.2021070105 ◽

2021 ◽

Vol 12 (3) ◽

pp. 67-86

Author(s):

Fakher Jaoua ◽

Elsayed Sobhy Ahmed Mohamed

Keyword(s):

Middle Managers ◽

Negative Influence ◽

Counterproductive Work Behaviors ◽

Work Behaviors ◽

Moderating Effects ◽

Industrial Upgrading ◽

Strategy Process ◽

Ceo Narcissism ◽

Unfavorable Condition ◽

The Impact

This research aims to develop a theoretical framework to explain the conditions that facilitate or hinder the strategic roles of middle managers, such as the effects of CEO narcissism on the strategic roles of middle managers through the moderating effects of counterproductive work behaviors. This research examines these issues in the context of large Tunisian companies participating in Industrial Upgrading Program. The results show that CEO narcissism positively influences the counterproductive work behaviors of middle managers, which in turn negatively influences the strategic roles of middle managers. Consequently, this negative influence calls into question the SRMMs and clearly shows that the presence of the CEO narcissism constitutes an unfavorable condition for the involvement of middle managers in strategy process. Obviously, this should lead the defendants of the involvement of middle managers in strategy process to rethink this participatory approach, and this by considering the conditions that facilitate or hinder the strategic roles of middle managers.

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Are All Narcissistic CEOs Socially Responsible? An Empirical Investigation of an Inverted U-Shaped Relationship Between CEO Narcissism and Corporate Social Responsibility

Group & Organization Management ◽

10.1177/10596011211040665 ◽

2021 ◽

pp. 105960112110406

Author(s):

Marwan Al-Shammari ◽

Abdul A. Rasheed ◽

Soumendra N. Banerjee

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Linear Relationship ◽

Empirical Investigation ◽

Fortune 500 ◽

Ceo Power ◽

Socially Responsible ◽

Ceo Narcissism ◽

Corporate Social ◽

The Relationship

We investigate the relationship between CEO narcissism and corporate social responsibility (CSR). We suggest an alternative to the current assumption of a linear relationship between CEO narcissism and CSR. Instead, we propose an inverted U relationship between the two. Although narcissistic CEOs may engage in CSR, we argue that highly narcissistic CEOs may be drawn to actions that would garner greater attention and they may be less inclined to engage in CSR. Based on a sample of Fortune 500 firms during the period 2006–2013, we find support for an inverted U relationship and support for our arguments that CEO power moderates the relationship between CEO narcissism and CSR.

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CEO Narcissism and Accounting: A Picture of Profits

Journal of Management Accounting Research ◽

10.2308/jmar-50638 ◽

2013 ◽

Vol 26 (2) ◽

pp. 243-267 ◽

Cited By ~ 64

Author(s):

Kari Joseph Olsen ◽

Kelsey Kay Dworkis ◽

S. Mark Young

Keyword(s):

Financial Performance ◽

Performance Measures ◽

Data Availability ◽

Personality Characteristics ◽

Share Price ◽

Earnings Per Share ◽

Narcissistic Personality ◽

Financial Performance Measures ◽

Operational Activities ◽

Ceo Narcissism

ABSTRACT This study investigates the relationship between narcissistic personality characteristics in CEOs of Fortune 500 companies and financial performance measures of earnings-per-share (EPS) and stock valuation. Using panel data from 1992 through 2009, we show that firms with narcissistic CEOs have higher earnings-per-share and share price than those with non-narcissistic CEOs. We examine the mechanism driving the observed results and find that narcissistic CEOs are more likely to increase reported EPS through real and operational activities rather than accrual-based manipulations. The findings suggest that narcissistic personality characteristics of top executives affect financial performance measures through the executive's decisions and influence over the firm's operational activities rather than through accrual and accounting decisions. Data Availability: Data available upon request.

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The Impact of the CEO's Personal Narcissism on Non-GAAP Earnings

The Accounting Review ◽

10.2308/tar-2017-0612 ◽

2020 ◽

Author(s):

Ahmed M. Abdel-Meguid ◽

Jared Jennings ◽

Kari Joseph Olsen ◽

Mark T. Soliman

Keyword(s):

Personality Traits ◽

Financial Reporting ◽

Performance Measure ◽

Firm Level ◽

Prior Literature ◽

Ceo Narcissism ◽

The Impact ◽

Disclosure Practice ◽

Shed Light

Non-GAAP earnings provide managers the flexibility to exclude GAAP items to either produce a more informative performance measure or provide them the ability to opportunistically exclude recurring expenses from non-GAAP earnings. Prior literature examines the use of this form of disclosure at the firm level, although it is ultimately management's decisions. We extend prior non-GAAP literature by examining whether the use and quality of non-GAAP earnings is influenced by CEO personality traits; namely CEO narcissism. We find narcissistic CEOs are more likely to exclude expenses from non-GAAP earnings and that the magnitude of exclusions is greater. We also find that those non-GAAP exclusions are more persistent, and thus lower quality. Our results shed light on the disclosure practice of non-GAAP earnings and show how narcissistic CEOs are more likely to take advantage of the discretion in financial reporting disclosures in order to benefit the firm and themselves.

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