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1 – 10 of over 2000
Article
Publication date: 7 February 2024

Yuri Gomes Paiva Azevedo, Mariana Câmara Gomes e Silva and Silvio Hiroshi Nakao

The purpose of this study is to examine the moderating effect of an exogenous corporate governance shock that curbs Chief Executive Officers’ (CEOs) power on the relationship…

Abstract

Purpose

The purpose of this study is to examine the moderating effect of an exogenous corporate governance shock that curbs Chief Executive Officers’ (CEOs) power on the relationship between CEO narcissism and earnings management practices.

Design/methodology/approach

The authors performed a quasi-experiment using a differences-in-differences approach to examine Brazil’s duality split regulatory change on 101 Brazilian public firms during the period 2010–2022.

Findings

The main findings indicate that the introduction of duality split curtails the positive influence of CEO narcissism on earnings management, suggesting that this corporate governance regulation may act as a complementary corporate governance mechanism in mitigating the negative consequences of powerful narcissistic CEOs. Further robustness checks indicate that the results remain consistent after using entropy balancing and alternative measures of CEO narcissism.

Practical implications

In emerging markets, where governance systems are frequently perceived as less than optimal, policymakers and regulatory authorities can draw insights from this enforcement to shape governance systems, reducing CEO power and, consequently, improving the quality of financial reporting.

Originality/value

To the best of the authors’ knowledge, this is the first study to examine whether a duality split mitigates the influence of CEO narcissism on earnings management. Thus, this study contributes to the corporate governance literature that calls for research on the effectiveness of external corporate governance mechanisms in emerging markets as well as the CEO narcissism literature that calls for research on moderating factors that could curtail negative consequences of narcissistic CEO behavior.

Details

Corporate Governance: The International Journal of Business in Society, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 5 February 2024

Elena Fedorova, Alexandr Nevredinov and Pavel Drogovoz

The purpose of our study is to study the impact of chief executive officer (CEO) optimism and narcissism on the company's capital structure.

Abstract

Purpose

The purpose of our study is to study the impact of chief executive officer (CEO) optimism and narcissism on the company's capital structure.

Design/methodology/approach

(1) The authors opt for regression, machine learning and text analysis to explore the impact of narcissism and optimism on the capital structure. (2) We analyze CEO interviews and employ three methods to evaluate narcissism: the dictionary proposed by Anglin, which enabled us to assess the following components: authority, superiority, vanity and exhibitionism; count of first-person singular and plural pronouns and count of CEO photos displayed. Following this approach, we were able to make a more thorough assessment of corporate narcissism. (3) Latent Dirichlet allocation (LDA) technique helped to find the differences in the corporate rhetoric of narcissistic and non-narcissistic CEOs and to find differences between the topics of interviews and letters provided by narcissistic and non-narcissistic CEOs.

Findings

Our research demonstrates that narcissism has a slight and nonlinear impact on capital structure. However, our findings suggest that there is an impact of pessimism and uncertainty under pandemic conditions when managers predicted doom and completely changed their strategies. We applied various approaches to estimate the gender distribution of CEOs and found that the median values of optimism and narcissism do not depend on sex. Using LDA, we examined the content and key topics of CEO interviews, defined as positive and negative. There are some differences in the topics: narcissistic CEOs are more likely to speak about long-term goals, projects and problems; they often talk about their brand and business processes.

Originality/value

First, we examine the COVID-19 pandemic period and evaluate how CEO optimism and pessimism affect their financial decisions under specific external conditions. The pandemic forced companies to shift the way they worked: either to switch to the remote work model or to interrupt operations; to lose or, on the contrary, attract clients. In addition, during this period, corporate management can have a different outlook on their company’s financial performance and goals. The LDA technique helped to find the differences in the corporate rhetoric of narcissistic and non-narcissistic CEOs. Second, we use three methods to evaluate narcissism. Third, the research is based on a set of advanced methods: machine learning techniques (random forest to reveal a nonlinear impact of CEO optimism and narcissism on capital structure).

Details

Review of Behavioral Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1940-5979

Keywords

Article
Publication date: 26 January 2024

Valerie A. Chambers, Matthew J. Hayes and Philip M.J. Reckers

Counterproductive work behavior (CWB) imposes significant costs on organizations, thus antecedents of CWB are of particular interest to both practitioners and academics. The…

Abstract

Purpose

Counterproductive work behavior (CWB) imposes significant costs on organizations, thus antecedents of CWB are of particular interest to both practitioners and academics. The authors examine how one’s own narcissism interacts with co-worker narcissism to influence willingness to engage in retaliatory CWB against a co-worker.

Design/methodology/approach

The data for this study were obtained from Amazon Mechanical Turk participants and Master of Business Administration students, representing a cross-section of employee representatives.

Findings

The authors find that employees expect narcissistic co-workers to engage in continuing future CWB and this, in turn, increases employees' willingness to engage in retaliatory CWB. That is, non-narcissistic employees are provoked to engage in organizationally-destructive behaviors by peers perceived as narcissists. This affect is attenuated by the employee’s own narcissism. Relative to non-narcissists, narcissistic employees find a narcissistic co-worker more likeable, which reduces their willingness to engage in retaliatory CWB against the co-worker.

Practical implications

For corporations and HR managers, this study demonstrates the caution necessary when considering hiring and operational practices. Specifically, non-narcissists demonstrate increased willingness to engage in organizationally-destructive behaviors after interpersonal conflict with a narcissistic co-worker.

Originality/value

The authors extend prior research about interpersonal drivers of CWB, which primarily considered superior-subordinate dyad, by examining the joint effects of individual and co-worker narcissism in peer-to-peer relationships.

Details

Journal of Organizational Effectiveness: People and Performance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2051-6614

Keywords

Book part
Publication date: 13 March 2023

Matthew J. Hayes and Philip M. J. Reckers

Prior research in psychology reports an age-based bias against narcissists. We examine whether managers' reactions to narcissistic subordinates exhibit a similar bias. Using an…

Abstract

Prior research in psychology reports an age-based bias against narcissists. We examine whether managers' reactions to narcissistic subordinates exhibit a similar bias. Using an experimental method, where we manipulate subordinate narcissism, we find evidence of an age-based bias. Older managers react to a narcissistic subordinate by making conservative revisions to the subordinate's aggressive accounting estimates. They do so even at the cost of failing to meet a personally beneficial earnings target. A test of moderated mediation shows the actions of older managers (in their late 40s and older) were driven by their negative perceptions of the narcissistic subordinate. Our work demonstrates that not all individuals perceive narcissists the same way, and has implications for manger/subordinate relationships, and group dynamics involving mixed personalities and ages.

Book part
Publication date: 18 January 2023

Kelsey Kay Dworkis and S. Mark Young

This study examines the effects of narcissism and bonus-based incentive plans on managerial decision-making performance. Using an experiment, the authors first examine decision…

Abstract

This study examines the effects of narcissism and bonus-based incentive plans on managerial decision-making performance. Using an experiment, the authors first examine decision choices under two levels of an incentive threshold (high and low). Narcissism is measured using the Narcissistic Personality Inventory (NPI). Typically, the NPI is used as a single monolithic construct in analyses; however, in this study, the authors subdivide it in two ways to gain more nuanced information about its impact on decision making. First, the authors split the NPI into three levels – high, medium, and low (Hascalovitz & Obhi, 2015), and then decompose it into its adaptive and maladaptive components (Campbell, Hoffman, Campbell, & Marchisio, 2011) to examine how these subdivisions affect performance. Results show that the different levels of incentive thresholds affect performance among narcissistic individuals. Results indicate that individuals higher in narcissism and higher in levels of adaptive and maladaptive narcissism outperform their low-trait counterparts in a lower-threshold environment, but not in a high threshold environment.

Book part
Publication date: 10 August 2011

Suzy Fox and Arthur Freeman

We link counterproductive work behavior (CWB) (particularly workplace bullying) and organizational citizenship behavior to individual narcissism and organizational culture. We…

Abstract

We link counterproductive work behavior (CWB) (particularly workplace bullying) and organizational citizenship behavior to individual narcissism and organizational culture. We link counterproductive work culture in turn to organizations' leader(s), enumerating multiple roles an executive may play: actor, target, ignorer, enabler, rewarder, or, ultimately, champion of change. Both positive (citizenship) and negative (counterproductive) behaviors are associated with narcissism, a complex, multifaceted set of personality characteristics, primarily based on the individual's cognitive interpretation of self and the world. Theoretical interpretations of reactive CWB (stressor-emotion-control theory) and instrumental CWB (theory of planned behavior) support the development of coaching and counseling interventions. Cognitive behavioral theory (CBT)-based prescriptive executive coaching is proposed as a promising mechanism for redirecting narcissistic organizational players from counterproductive to citizenship schemas and behaviors.

Details

The Role of Individual Differences in Occupational Stress and Well Being
Type: Book
ISBN: 978-0-85724-711-7

Article
Publication date: 27 November 2023

Lin Yang, Zhibin Lin, Rose Quan, James Cunningham and Wei Huang

In today's competitive business environment, understanding how leadership traits shape outcomes is critical. Chief executive officer (CEO) narcissism, an intriguing and debated…

Abstract

Purpose

In today's competitive business environment, understanding how leadership traits shape outcomes is critical. Chief executive officer (CEO) narcissism, an intriguing and debated trait, raises questions about its impact on organisational behaviour, particularly regarding entrepreneurial orientation (EO). This study aims to examine how CEO narcissism affects EO, both as aggregate and specific measures, encompassing internal and external growth. It also considers the organisational context by examining how factors such as capital intensity, firm ownership and CEO duality moderate this relationship.

Design/methodology/approach

To test the hypotheses, the authors used a sample of firms drawn from China's ChiNext database (2008–2017). After an initial screening, the final sample consists of 251 CEOs from 239 companies. Data on CEO narcissism are collected from the firm's official website and major online sources, whilst additional data are extracted from the WIND daabase. The authors use multiple regression and ordinary least squares (OLS) for data analysis.

Findings

The results show that CEO narcissism leads to external asset growth investments but not internal research and development (R&D). There is a positive relationship between CEO narcissism and EO as an aggregate measure and also different managerial discretions play varying roles in the relationship. Specifically, capital intensity weakens this relationship, but state ownership strengthens it.

Originality/value

This study helps to clarify the relationship between CEO narcissism and EO and advances the literature by showing that firms' EO actions may take various forms of innovation and venturing as new entry initiations of EO. The study findings have important implications for firms to capitalise on narcissistic CEOs' entrepreneurial tendencies, balance internal R&D and external asset growth and leverage various managerial discretions.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 30 no. 1
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 9 August 2023

Mohammad Hossein Safarzadeh and Mohammad Amin Mohammadian

This study aims to examine the association between Iranian auditors' narcissism and the auditors' professional skepticism.

Abstract

Purpose

This study aims to examine the association between Iranian auditors' narcissism and the auditors' professional skepticism.

Design/methodology/approach

The authors' sample is comprised of 355 professional auditors working in the private and public sectors in Iranian firms in 2022. The authors use cross-sectional multivariate regression as the main methodology, along with the structural equation modeling (SEM) technique.

Findings

The authors find that a higher level of narcissism leads to a greater level of professional skepticism among auditors, which ultimately can enhance the quality of the audit process. The results provided via the robustness tests also supported this finding.

Originality/value

The authors' findings further the understanding of the role of narcissistic personality traits in improving professional skepticism among auditors of an Islamic and emerging country. In addition, audit firms and audit partners can also consider the findings of this study and enhance the effectiveness of audit processes by assigning appropriate employees with certain personalities to specific tasks.

Details

Asian Review of Accounting, vol. 32 no. 1
Type: Research Article
ISSN: 1321-7348

Keywords

Open Access
Article
Publication date: 15 September 2023

Marta Riera and María Iborra

The aim of this article is to highlight the major part played by executives in the escalation of corporate social irresponsibility (CSI). Based on the upper echelons theory, the…

Abstract

Purpose

The aim of this article is to highlight the major part played by executives in the escalation of corporate social irresponsibility (CSI). Based on the upper echelons theory, the authors developed a model which shows the essential role of CEOs in explaining CSI. The authors proposed that the key personality traits of CEOs—narcissism—, as well as their power, could explain the degree of CSI.

Design/methodology/approach

Due to the significant methodological challenges when investigating CSI, the authors explored a novel method for measuring CSI in order to assess the degree of irresponsible behaviors. The authors build a CSI scale based on the perceptions of key informants, i.e. experts with diverse professional backgrounds. The authors apply CSI scale in a sample of 84 Spanish companies that were involved in CSI.

Findings

The results of the authors’ empirical study show the positive and significant influence of CEO narcissism and CEO power on the degree of CSI.

Research limitations/implications

On the one hand, corporate irresponsibility scandals have relevant social consequences and practical implications. On the other hand, narcissism is a natural feature of managers in top positions that is increasing in societies.

Practical implications

The authors’ findings may help CEOs, TMTs and corporate boards to acknowledge potential sources of CSI decreasing its likelihood through counterbalancing CEO's power and considering the dark side of narcissism.

Social implications

On the one hand, corporate scandals have relevant social and practical implications. On the other hand, narcissism is a natural feature of managers in top positions that is increasing in societies.

Originality/value

In this paper, the authors highlight the role of CEOs characteristics and their firms as the key actors for explaining and understanding the degree of CSI.

研究目的:

本研究擬強調行政主管在加劇企業無社會責任感上所扮演的主要角色。我們根據高層梯隊理論, 開發了一個模型, 來顯示執行長如何在解釋企業無社會責任感上所起的關鍵作用。我們提出一個見解, 就是: 執行長的主要人格特質-自戀和其權力-或許能解釋企業無社會責任感的程度。

研究設計/方法/理念:

由於面對在關於企業無社會責任感的研究法上的重大挑戰, 我們探索了一個估量企業無社會責任感的新穎方法, 以能對企業無社會責任感行為的程度進行評估。我們根據主要的資訊提供者的觀念和看法, 制定了一個企業無社會責任感的等級 (這些主要的資訊提供者均為具有不同專業背景的專家), 我們在84間西班牙公司的樣本裡, 使用了這企業無社會責任感等級, 而這些公司均涉及企業無社會責任感的。

研究結果:

我們這實證研究的結果顯示, 執行長的自戀和其權力, 對企業無社會責任感的程度, 起著正面和顯著的影響。

研究的原創性:

在本學術論文裡, 我們強調了執行長的特徵和他們的公司, 是瞭解和解釋企業無社會責任感的程度的關鍵行為者。

實務和社會方面的啟示:

一方面, 企業無社會責任感的醜聞會帶來相關的社會後果和實務方面的影響;而另一方面, 自戀是高層主管的自然特徵, 而這些特徵, 在我們的社會裡不斷增強。本研究的結果, 或許可幫助執行長、高層管理團隊和公司董事會去承認企業無社會責任感的潛在原因, 並以透過平衡執行長的權力和考慮自戀的陰暗面而減低企業無社會責任感產生的可能。

Details

European Journal of Management and Business Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2444-8451

Keywords

Article
Publication date: 3 August 2023

Piyachat Burawat

The purpose of this study is to investigate the structural relationship model among narcissism, work centrality, employee engagement and discretionary effort.

1016

Abstract

Purpose

The purpose of this study is to investigate the structural relationship model among narcissism, work centrality, employee engagement and discretionary effort.

Design/methodology/approach

Respecting the quantitative approach, the data were gathered by means of the survey completed by 1,190 respondents of Generation X, Y and Z working in the Thai service and manufacturing industries.

Findings

The findings of the study indicated positive associations between narcissism and work centrality, narcissism and employee engagement, work centrality and employee engagement and employee engagement and discretionary effort. It was observed that work centrality played a partially mediating role in the relationships between narcissism and employee engagement, while employee engagement fully mediated the associations between work centrality and discretionary effort, as well as between narcissism and discretionary effort. The structural model demonstrated variations across different generational cohorts, suggesting that the relationships differed among generations. However, the model did not exhibit any variations across different types of industries. Furthermore, the findings from the Thai samples indicated that generational differences had a moderating effect on the path relationships between narcissism and work centrality (with Generation Y having a stronger effect compared to Generation Z and Generation X), narcissism and employee engagement (with Generation Y having a stronger effect compared to Generation Z and Generation X) and narcissism and discretionary effort (with Generation X having a stronger effect compared to Generation Y and Generation Z), all with a significance level of 95%. Additionally, the relationship between employee engagement and discretionary effort showed a significant difference across generations, with Generation Z exhibiting a stronger effect compared to Generation Y and Generation X, at a significance level of 99%.

Originality/value

This study provides empirical evidence supporting the positive relationships between narcissism and work centrality, as well as narcissism and employee engagement, contrary to previous research findings. The results reveal that employee engagement fully mediates the associations between work centrality and discretionary effort, as well as between narcissism and discretionary effort, offering valuable contributions to the existing literature. Furthermore, this study expands on previous research by examining the moderating effect of industry type, specifically comparing manufacturing and service industries. The findings suggest that the model exhibits variations across different generational cohorts, highlighting the importance of considering generational differences in understanding these relationships. However, the model does not exhibit variations across different types of industries.

Details

Industrial and Commercial Training, vol. 55 no. 4
Type: Research Article
ISSN: 0019-7858

Keywords

1 – 10 of over 2000