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Article
Publication date: 17 April 2020

Tom Aabo, Frederik Hoejland and Jesper Pedersen

The purpose of this paper is to investigate the role of narcissistic supply for the association between CEO narcissism and corporate risk taking.

Abstract

Purpose

The purpose of this paper is to investigate the role of narcissistic supply for the association between CEO narcissism and corporate risk taking.

Design/methodology/approach

The authors investigate a sample of 281 non-financial S&P 1500 firms and a corresponding 457 CEOs in the 10-yr period 2006–2015.

Findings

The association between CEO narcissism and corporate risk taking depends on the admiration, attention, and affirmation of own superiority (“narcissistic supply”) that the CEO receives given her/his current position. Thus, a narcissistic CEO with an insufficient narcissistic supply (small firm/small compensation) will crave for more and take more risks (“rock the boat”) while a narcissistic CEO with a sufficient narcissistic supply (large firm/large compensation) will protect the status quo and be reluctant to take new risks. Specifically, the authors find that a change from a slightly narcissistic CEO to a strongly narcissistic CEO, for positions entailing limited (abundant) narcissistic supply, is associated with an increase (a decrease) in corporate risk of 6%–8% (11%–27%).

Originality/value

Previous research indicates a positive association between CEO narcissism and corporate risk taking in specific domains such as M&A and R&D activities. This paper provides a novel contribution to the existing literature by identifying and assessing the important role of narcissistic supply for the association between CEO narcissism and corporate risk taking in general.

Details

Review of Behavioral Finance, vol. 13 no. 2
Type: Research Article
ISSN: 1940-5979

Keywords

Article
Publication date: 4 September 2020

Tom Aabo, Mikkel Als, Lars Thomsen and Jesper N. Wulff

The purpose of this paper is to investigate the role of CEO narcissism in corporate acquisitions with a focus on frequency and size and furthermore to examine the subsequent stock…

1004

Abstract

Purpose

The purpose of this paper is to investigate the role of CEO narcissism in corporate acquisitions with a focus on frequency and size and furthermore to examine the subsequent stock market reaction.

Design/methodology/approach

The authors investigate 751 acquisitions made by 158 UK nonfinancial firms and 202 CEOs in the 10-year period 2007–2016. The authors use the ratio of first-person singular pronouns to total first-person pronouns in CEO speech as the main proxy for CEO narcissism but the results are robust to the use of signature size and picture as alternative measures.

Findings

The authors find that increased CEO narcissism is associated with an increase in M&A expenditures, an increase in deal size and a decrease in deal frequency. Thus, the authors find that narcissistic CEOs favor size over frequency (“go big”). Furthermore, the authors find that the stock market reacts less favorably to acquisitions announced by firms run by narcissistic CEOs.

Originality/value

The paper contributes to upper echelon research by investigating the association between CEO narcissism and corporate decisions in a UK setting. More specifically, the paper contributes to the existing literature by investigating how CEO narcissism is associated with corporate acquisitions in terms of the size and frequency of deals and how such irrational behavior is penalized by the stock market. Previous literature has focused on the more broad association between CEO narcissism and M&A expenditures.

Details

Review of Behavioral Finance, vol. 13 no. 5
Type: Research Article
ISSN: 1940-5979

Keywords

Article
Publication date: 29 August 2023

Arpita Agnihotri and Saurabh Bhattacharya

This study aims to explore how CEO narcissism drives investment in corporate social responsibility (CSR) and its mediating mechanism.

Abstract

Purpose

This study aims to explore how CEO narcissism drives investment in corporate social responsibility (CSR) and its mediating mechanism.

Design/methodology/approach

This study includes panel regression based on archival data.

Findings

CEO narcissism leads to signaling of organizational virtuous orientation that results in increase in CSR investment.

Originality/value

Relevance of CEO traits on CSR remains unexplored in emerging markets context, especially the underlying mechanism. This study uncovers these mechanisms.

Details

Society and Business Review, vol. 19 no. 2
Type: Research Article
ISSN: 1746-5680

Keywords

Article
Publication date: 17 February 2023

Rachael Wheatley and Clare Conway

This discussion paper aims to further explore narcissistic vulnerability as a psychological concept in relation to stalking, adding to the literature base by resurrecting this…

Abstract

Purpose

This discussion paper aims to further explore narcissistic vulnerability as a psychological concept in relation to stalking, adding to the literature base by resurrecting this focus and exploring practical implications of this association through proposing a schema therapy (ST) approach.

Design/methodology/approach

Stalking results from an interaction of circumstances and a vulnerable personality. Understanding the psychology of those who stalk, before and during stalking episodes, is pivotal in helping the person stalking to desist and thus protect victims. Knowing how to most effectively intervene at the earliest opportunity with those stalking is an area receiving renewed attention. Not least due to the improved identification of stalking, but also the continued absence of empirical evidence on effective intervention approaches. This paper sets out to explore the utility of ST with stalking cases.

Findings

Recent research undertaken by Wheatley et al. (2020) with men who had stalked and were detained in prison within the UK highlighted narcissistic vulnerability as a key feature in their personalities. The original study provided support for the linked conceptualisations of narcissistic vulnerability, preoccupied attachment styles and the phenomenon of stalking. This paper extended discussions to explore the utility of ST to address narcissistic vulnerability in stalking cases.

Originality/value

This is an original discussion paper combining research with stalking cases, practitioner specialism, psychological theory and existing empirical literature to argue for the value of ST for addressing stalking.

Details

Journal of Criminal Psychology, vol. 13 no. 2
Type: Research Article
ISSN: 2009-3829

Keywords

Article
Publication date: 13 May 2020

Md. Rafiqul Islam Rana and Jung E. Ha-Brookshire

The purpose of this study is to investigate the relationships between the social power of apparel buyers from developed countries and the psychologically defensive workplace…

Abstract

Purpose

The purpose of this study is to investigate the relationships between the social power of apparel buyers from developed countries and the psychologically defensive workplace behavior (PDWB) of the suppliers from a developing country.

Design/methodology/approach

An online survey was used to collect 205 responses from the professionals who were working in the apparel exporting companies in Bangladesh. Data were analyzed quantitatively.

Findings

The results showed that the exercise of buyers' reward and coercive power was associated with the suppliers' perfectionistic workplace behavior. The exercise of buyers' coercive power was associated with the suppliers' arrogant-vindictive workplace behavior. The exercise of buyers' reward power was associated with the suppliers' narcissistic workplace behavior, and coercive power was found to be statistically suggestive.

Research limitations/implications

This study purposely used convenient and snowball sampling techniques to collect data from Bangladesh only. Future researchers could focus on random sampling from different countries to improve the generalizability of the research.

Practical implications

This study will help apparel buyers to better negotiate with Bangladeshi suppliers regarding maintaining proper workplace conditions and compliances. It will also help industry professionals to better educate suppliers on how to deal with workplace pressure.

Originality/value

This study adds to the literature on social power and PDWB, specifically related to the apparel manufacturing industry, and will help illustrate the impact of workplace behavior in terms of corporate social responsibility beyond the usual measurement of the codes of conduct and compliance issues.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 24 no. 2
Type: Research Article
ISSN: 1361-2026

Keywords

Article
Publication date: 22 May 2023

Yun Shen, Vito Mollica and Aldo Fortunato Dalla Costa

This study sheds new light on the personality trait and provides evidence regarding the relation between narcissism and desirable accounting practices, specifically the impact of…

Abstract

Purpose

This study sheds new light on the personality trait and provides evidence regarding the relation between narcissism and desirable accounting practices, specifically the impact of CEO narcissism on accounting conservatism.

Design/methodology/approach

The authors test the relation between CEO narcissism and accounting conservatism for a sample of 907 US companies and their corresponding CEOs for the period between 2010 and 2018. The authors apply three established models of accounting conservatism and measure executives' narcissism using a non-intrusive approach ubiquitous in the literature.

Findings

The authors find that CEO narcissism is associated with speculative accounting practices in the form of timely recognition of positive news and more prudent financial reporting of anticipated negative news. The authors provide the first empirical evidence that, despite its well-known negative effects on corporate financial reporting, executive narcissism can also produce positive outcomes.

Originality/value

While managerial overconfidence has received much attention, the effects of executives' narcissism are still widely unexplored (Chatterjee and Hambrick, 2007). The authors thus contribute to the literature by investigating the relationship between CEOs' narcissism and accounting conservatism. The authors conjecture CEO narcissism should have a twofold effect on prudent financial reporting. On the one hand, CEOs' narcissism should be associated with low levels of unconditional conservatism due to excessively fast good news recognition. On the other hand, narcissistic executives should be associated with early recognition of negative news and hence with higher levels of conditional conservatism.

Details

Journal of Accounting Literature, vol. 46 no. 1
Type: Research Article
ISSN: 0737-4607

Keywords

Article
Publication date: 1 February 2021

Mahdi Salehi, Safoura Rouhi, Mohana Usefi Moghadam and Faezeh Faramarzi

Success in corporate relative performance is one of the factors for the growth and durability of firms. Since the relative performance is a function of managers' decisions and…

Abstract

Purpose

Success in corporate relative performance is one of the factors for the growth and durability of firms. Since the relative performance is a function of managers' decisions and such decisions are under the influence of behavioral and psychological characteristics, this paper aims to assess the managers’ and auditors’ narcissism's effect on the management team's stability relative to corporate performance.

Design/methodology/approach

This paper has used the signature magnitude for examining narcissism and the regression model of Jenter and Kanaan (2015) for assessing relative corporate performance. The logistic regression is used to test the model of the management team's stability, and the multivariate regression is used to test the model of relative corporate performance. Research hypotheses were also examined using a sample of 768 listed year-companies on the Tehran Stock Exchange during 2012–2017 and by employing a panel data approach and fixed effects method.

Findings

The obtained results show a negative and significant relationship between managers' and auditors' narcissism and the management team's stability. The relationship between the narcissism of managers and auditors and relative corporate performance is positive and significant. Moreover, managers' narcissism positively and significantly impacts the relationship between auditors' narcissism and team management stability. A negative and significant relationship is evident between auditors’ narcissism and relative corporate performance.

Originality/value

This study's results can identify the effect of psychological components such as narcissism on people's performance by directing and influencing their decisions. Many studies have been conducted on narcissism, but none of them have examined the impact auditors’ and managers' narcissism has on the management team's stability and the corporate relative performance. Therefore, considering the importance of success in the corporate relative performance and benefits of the management team's stability, this study's results can reveal the importance of such features in accounting research. Also, the results of this research can make it important to know more about financial behavioral theory.

Details

International Journal of Productivity and Performance Management, vol. 71 no. 4
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 2 November 2023

Arash Arianpoor, Imad Taher Lamloom, Bita Moghaddampoor, Hameed Mohsin Khayoon and Ali Shakir Zaidan

The present study investigates the impact of managerial psychological characteristics on the supply chain management efficiency (SCME) of companies listed in Tehran Stock Exchange.

Abstract

Purpose

The present study investigates the impact of managerial psychological characteristics on the supply chain management efficiency (SCME) of companies listed in Tehran Stock Exchange.

Design/methodology/approach

To this aim, information about 215 companies was analyzed during 2014–2021. The sales per inventory ratio was used to calculate SCME. In the present study, the focus is on characteristics such as managerial entrenchment, managerial myopia, managerial overconfidence (MOC) and managerial narcissism, all considered as managerial attributes.

Findings

The present findings showed that managerial myopia/managerial entrenchment (MOC/managerial narcissism) have a negative (positive) effect on SCME. Hypothesis testing based on robustness checks confirmed these results. Moreover, the findings are presented separately for companies with high business strategy (first quarter) and low business strategy (third quarter). The results show that at low levels of differentiation strategy, managerial entrenchment does not have a significant effect on SCME while other managerial attributes have a significant effect on both high and low business strategy.

Originality/value

The present study contributes to the identification of managerial psychological characteristics influencing SCME to advance future studies and support practical efforts. The present findings can prove the significance of this research and fill the existing gap in research.

Article
Publication date: 9 January 2009

Lynn Godkin and Seth Allcorn

This article aims to present an alternative approach to diagnosing behavioral barriers to organizational learning.

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Abstract

Purpose

This article aims to present an alternative approach to diagnosing behavioral barriers to organizational learning.

Design/methodology/approach

The paper juxtaposes interruptions in organizational learning with characteristics of narcissism and arrogant organization disorder. Psychoanalytically informed theory and DSM‐IV criteria are applied to interruptions in organizational learning and an alternative approach to diagnosing behavioral barriers to organizational learning is suggested.

Findings

This paper illustrates how managers might account for human failings when considering organizational learning in less than ideal settings.

Originality/value

This paper demonstrates how informed psychoanalytical theory can be applied to the learning organization and provides a framework from which to diagnose and deal with arrogant organization disorder.

Details

The Learning Organization, vol. 16 no. 1
Type: Research Article
ISSN: 0969-6474

Keywords

Article
Publication date: 13 March 2017

Anne K. Fennimore

This paper aims to adapt the medical phenomenon of Munchausen syndrome by proxy (MSBP) to an organisational context. Specifically, MSBP serves as a novel metaphor to describe the…

Abstract

Purpose

This paper aims to adapt the medical phenomenon of Munchausen syndrome by proxy (MSBP) to an organisational context. Specifically, MSBP serves as a novel metaphor to describe the tendency for the organisation and the leader to perpetuate cycles of illness and therapy.

Design/methodology/approach

A conceptual metaphor is proposed based on the clinical description of MSBP. A perpetual feedback model emphasises a constant cycle of illness and therapy among leaders and organisations, often fabricated by a narcissist through destructive management.

Findings

The metaphor presented suggests that the role of deception is important for understanding why therapeutic approaches are often unnecessary, highly disruptive and administered by a destructive leader who possesses the power to alienate or dismiss non-corroborative organisational members. The implications of continuously passing illness between the leader and the organisation are a state of organisational disequilibrium and the manufacture of depersonalised, ill members.

Originality/value

This conceptual paper adds to the growing body of literature on behavioural strategy and contributes to the fields of organisational psychology, organisational analysis, management and employee relations.

Details

International Journal of Organizational Analysis, vol. 25 no. 1
Type: Research Article
ISSN: 1934-8835

Keywords

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