Search results

The purpose of this paper is to examine how CEO narcissism can be related to the usage of an abnormal optimistic tone in financial disclosures. Drawing on upper echelons theory, this paper suggests a link between CEO characteristics, such as narcissism, and accounting choices, such as optimistic financial reporting language.

To measure the narcissistic trait of a CEO, the study builds on a model using a set of 15 archival indicators. The usage of an abnormal optimistic tone is assessed quantitatively when looking at firms’ 10-K filings, where “abnormal” refers to tone that is unrelated to a firm’s performance, risk, and complexity. This approach allows for the use of firm-fixed effects for a sample of US listed firms over the period 1992-2012.

The results show that CEO narcissism is significantly positively related to abnormal optimistic tone in 10-K filings. If a highly abnormal optimistic tone is present, the level of CEO narcissism is positively related to the likelihood of future seasoned equity offerings and larger future investments in research and development.

The findings are relevant for shareholders and stakeholders as well as auditors and legislators. All stakeholders should be aware of the overly optimistic reporting language resulting from CEO narcissism and need to make allowances for it when assessing firm performance based on financial disclosures.

This study is the first to show in a large-scale sample how CEO narcissism can be related to a firm’s use of optimistic language, and thus contributes to the question of how personality traits affect an organization’s financial reporting strategy.

The purpose of this paper is to contribute to the discourse on labour market discrimination by introducing an analytical process model that offers a template for the systematic analysis of discrimination within the process of labour market integration. Its usage and contribution to the field is exemplified by applying the proposed model to the case of ageism in labour market integration.

Five phases and four actors are distinguished that, added together, compose the proposed analytical process model. In the following, the model is used as an analytical framework for a mapping review, aimed at identifying and critically evaluating the vast and extensive literature on ageism in the process of labour market integration.

The paper concludes that ageism occurs in all five phases of the integration process, pinpointing potential areas for policy interventions. Furthermore, the authors conclude that the existing literature on ageism in labour market integration is fragmented, with some elements and/or actors within the process so far having received little attention.

The analytical process model developed in this paper provides the scientific community with a tool to systematise the literature, detect underlying mechanisms and uncover existing research gaps, not only for the case of ageism presented here, but for a vast variety of other –isms. In addition, policy makers, trade unions and employers can use the model to better target and tailor anti-discrimination measures in labour market integration.