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1 – 10 of 344Yuri 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.
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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.
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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).
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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.
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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.
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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.
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Bastian Burger, Dominik K. Kanbach and Sascha Kraus
Recent years have seen a meteoric rise in the study of narcissism in entrepreneurship, although little consolidation has occurred in this area. The purpose of this paper is the…
Abstract
Purpose
Recent years have seen a meteoric rise in the study of narcissism in entrepreneurship, although little consolidation has occurred in this area. The purpose of this paper is the development of an integrative framework to harmonise the academic discussion and serve as a structured foundation for future research.
Design/methodology/approach
The authors conducted an artificial intelligence-aided, structured literature review focused on content analysis of concepts and contexts to map out current findings and research gaps in startup narcissism research.
Findings
According to the findings of this study, narcissistic tendencies have the potential to positively influence startup success early on in an entrepreneur's journey, but after a certain point in the process, the influence of narcissism on success becomes predominantly negative.
Research limitations/implications
The research field is currently not very harmonised regarding research measures, research subjects and key research terms. Further research must use a standardised approach to add value to the research body.
Practical implications
Narcissism is a two-sided sword for founders. In the early stages of a company, many of the founder’s tasks can benefit from narcissistic tendencies. In the later stages of a company, that might shift to overwhelmingly negative effects of narcissism.
Originality/value
Methodically, this study is the first one to establish an artificial intelligence component to add value to the results of a review paper to the best of the authors’ knowledge. The results of this study provide a clear framework of entrepreneurial intention, entrepreneurial activity and entrepreneurial performance to give researchers the opportunity of a more differentiated way of organising work.
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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.
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Shih Yung Chou and Charles Ramser
Utilizing a self-regulatory perspective, the authors examine how narcissism influences perceived negative inequity and the downstream effects on self-enhancement motivation and…
Abstract
Purpose
Utilizing a self-regulatory perspective, the authors examine how narcissism influences perceived negative inequity and the downstream effects on self-enhancement motivation and organizational citizenship behaviors (OCBs) over time.
Design/methodology/approach
A total of 689 useable three-wave panel data were obtained via Amazon Mechanical Turk during a three-month period. A latent growth curve modeling approach using EQS 6.4 for Windows was employed to test the hypothesized model.
Findings
Results illustrate that individuals with higher levels of narcissism perceive higher levels of perceived negative inequity and then form higher levels of self-enhancement motivation, which prompt more OCB directed toward the organization (OCBO) than OCB directed toward individuals (OCBI). When perceived negative inequity increases over time, narcissists experience a faster increase in self-enhancement motivation, which also leads to a faster increase in OCBO compared to the increase in OCBI.
Originality/value
Theoretically, this study provides theoretical and empirical insights into understanding the process through which narcissists' OCBs are motivated. Practically, this study offers several practical recommendations that help managers manage OCBs effectively in the organization.
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Melodi Botha and Sphumelele Sibeko
As research emerged in terms of how narcissism, a negative or dark trait, has been found to be constructive in enhancing entrepreneurial behaviour, there are mixed results…
Abstract
Purpose
As research emerged in terms of how narcissism, a negative or dark trait, has been found to be constructive in enhancing entrepreneurial behaviour, there are mixed results regarding the significance of narcissism in the field of entrepreneurship. Additionally, this previous research has mostly been conducted on student or nascent entrepreneur samples within developed economies. Therefore, the purpose of this paper is to explore how narcissistic traits of established entrepreneurs in an emerging economy context infuence their entrepreneurial behaviour both positively and negatively.
Design/methodology/approach
Gioia methodology was applied in the qualitative study by means of in-depth interviews, which allowed for the unpacking of narcissistic traits among established entrepreneurs in South Africa. Four themes emerged from the data, and included insights related to entrepreneurial experience influencing behaviour; business growth linked to personal development; opportunity identification versus loss; and identity separation in relation to authentic identity versus an entrepreneurial identity.
Findings
The findings of the paper contribute to creating an understanding of how to hone individual narcissistic traits for positive influences that develop entrepreneurs while also contributing to their business development, opportunity realization and identity. In addition, the findings highlighted a separation between established entrepreneurs’ authentic personality and the inputs that end up resulting in the entrepreneurial personality.
Originality/value
This paper highlights the possibility of narcissism functioning as a business process involved in entrepreneurship rather than a necessary personality trait. An interesting dynamic contributed to what seems to be a constant battle between the authentic identity and the entrepreneur identity, gaining deeper insight surrounding established entrepreneurs’ experiences to survive and, more importantly, thrive as entrepreneurs.
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