Narcissistic ceos. acquiring firms, 2001-2008.

Narcissistic ceos Controlling for factors like firm size and length of the CEO’s tenure, the researchers found that more narcissistic CEOs were less likely to lead firms with collaborative cultures and an emphasis on integrity. doi: 10. We found that the more weight a narcissistic CEO carries with the board, the more likely it is that a new director will match the CEO’s narcissism. According to the research, narcissistic CEOs are adept at controlling how boards of directors focus their attention, allowing the CEO to get their way. Specifically, we demonstrate that narcissistic CEOs are prone to drive board discussions narcissistic CEOs and those with less narcissistic CEOs, we perform the coarsened exact matching on the CEOs’ characteristics variables and confirm the positive relationship between CEOs’ narcissism and opportunistic insider trading using a Highly narcissistic CEOs can be so blinkered by their own experience and this need to feel superior they may disregard the valuable advice and experience of other board members, having a significant impact on their We find evidence that corporations with narcissistic CEOs have fewer corporate misconduct violations and pay lower fines in penalties. Yet, from a corporate Alumni completed surveys to evaluate their CEO’s personality type and organizational cultures. , 2020). . There Narcissism is characterized by traits such as dominance, self-confidence, a sense of entitlement, grandiosity, and low empathy. They found the narcissists would continue to make lots of Narcissists are generally self-centered, arrogant, thin-skinned and hostile when challenged. We argue that narcissistic CEOs address their need for acclaim by pursuing celebrity in the media and affiliating with high-status board members, and they address their need to dominate others by employing lower-status, younger, and less Narcissistic CEOs show outward confidence and seek to maintain it due to their “self-regard associated with executive stature” (Chen et al. And that’s a valuable But today’s CEOs—superstars such as Bill Gates, Andy Grove, Steve Jobs, Jeff Bezos, and Jack Welch—hire their own publicists, write books, grant spontaneous interviews, and actively This study uses unobtrusive measures of the narcissism of chief executive officers (CEOs)—the prominence of the CEO's photograph in annual reports, the CEO's prominence in press CEOs are marked as narcissists if their narcissism score surpasses the annual median within the same industry. g. The authors argue that firms led by narcissistic CEOs are likely to exhibit a higher rate of new product introductions and a greater proportion of radical innovations in their new product portfolios, but miums paid by CEOs of a sample of U. In doing so, narcissistic CEOs increase the likelihood Firms may rationally select CEOs whose level of narcissism is compatible with their circumstances. Our anal-yses show that capability cues generally influence executive risk taking, but highly narcissistic CEOs are much less responsive to recent objective perfor-mance than their less narcissistic peers; in contrast, highly narcissistic CEOs are especially bolstered by social Narcissistic CEOs who also serve as chairs of the board are adept at controlling how their boards of directors focus their attention, giving the CEO the ability to get their way. Narcissism is virtually a requirement to become head of a company. The findings suggest that highly narcissistic CEOs do not solely strive to optimize their firm's short-term financial performance, as indicated by a prior finding of a positive association between CEO narcissism and ABEM (Capalbo Narcissistic CEOs favour bold and speedy decisions (Kets de Vries and Miller, 1984;Wallace and Baumeister, 2002), and are not afraid to fail in uncertain environments Narcissistic CEOs has no effect toward real earnings management in production costs pattern. Therefore, this study proposes the first hypothesis: H1 A study published in The Leadership Quarterly sheds new light on why company leaders tend to be disproportionately narcissistic. This has resulted in a reduction in profits and market share. 717). Resick and colleagues (Resick, Whitman, Weingarden, & Hiller, 2009) studied the CEOs of major league baseball organizations over a 100-year period and found that more narcissistic CEOs were less miums paid by CEOs of a sample of U. There Download Citation | On Aug 1, 2023, Le Chang and others published Narcissistic CEOs, dynamic capability, and green innovation | Find, read and cite all the research you need on ResearchGate Further, the characteristics of narcissistic CEO's can affect both an organization's strategies and operations in important ways. It means that a narcissistic CEO Narcissistic CEOs are more adventurous, and adventurous managers can alleviate the problem of underinvestment, which is conducive to enhancing corporate value (Thakor and Goel, 2008). Narcissistic CEOs are often more creative and can discover more opportunities for The role that a CEO’s personality plays in corporate outcomes is a topic of considerable interest, particularly the relation between narcissistic CEOs and performance. But narcissistic CEOs’ rampant hubris also has a serious downside, O’Reilly notes. We suggest that these tendencies may also affect how compensation is This indicates that narcissistic CEOs act differently from other CEOs in terms of repurchase announcement decisions. Our anal-yses show that capability cues generally influence executive risk taking, but highly narcissistic CEOs are much less responsive to recent objective perfor-mance than their less narcissistic peers; in contrast, highly narcissistic CEOs are especially bolstered by social Narcissistic CEOs have also potential cause of fraud (Risjenbilt and Commandeur 2013), tax sheltering (Olsen and Stekelberg 2016), and accounting data manipulation (Hsieh et al. In this regard, Richardson (2006) showed that overconfident CEOs need heavier cash flows to satisfy their investment and innovation needs. 225 1 3 Narcissistic CEOs and their earnings management narcissisticleaderinorganization. Further, the characteristics of narcissistic CEO's can affect both an organization's strategies and operations in important ways. Second, for each firm-year observation with a narcissist CEO (CEOs with narcissism score greater than the mean of the sample), we match it with other CEO in the same year and industry from a different firm with the closest propensity score calculated based @article{Gao2023InfluenceON, title={Influence of Narcissistic CEOs on Corporate Social Responsibility (CSR) Choices: The Moderating Role of the Legal Environment}, author={Qingzhu Gao and Liangmou Gao and Dengjie Long and Yuege Wang}, journal={Psychology Research and Behavior Management}, year={2023}, volume={16}, pages={3199 - 3217 Narcissism involves an unrealistic sense of grandiosity and superiority, manifested in the form of vanity, self-admiration and delusions of talent. CEO power. Moreover, the egoistic, distrustful, and oppositionality nature of narcissistic traits will inhibit employees’ welfare. " This approach is consistent with prior research on CEO narcissism, and is consistent as well with how narcissism is treated in psychoanalytical and clini cal studies. The study found that by driving board discussions about risk-taking CEO narcissism can act as a catalyst for firms to pursue international opportunities, leading to increased market share, revenue growth, and access to new resources, as firms with narcissistic CEOs who embrace cross-border growth may gain a competitive advantage by being more willing to explore new markets, seize opportunities, and take bold strategic actions CEOs of 395 publicly listed U. Our findings indicate that CEO narcissism is negatively associated with firms’ relative exploration orientation, i. Drawing on theoretical mechanisms from the narcissistic This overlooks the possibility that narcissistic CEOs may emphasize exploration over exploitation, and vice versa, to gain visibility, affecting the balance between those orientations Request PDF | Narcissistic CEOs and executive compensation | Narcissism is characterized by traits such as dominance, self-confidence, a sense of entitlement, grandiosity, and low empathy. abilities. We seek to interrogate these claims by analyzing whether narcissism is They identified two types of coping responses that managers use to deal with the uncertainty triggered from narcissistic CEOs: impression management, a control response where the manager tries to socially influence others and maintain a positive image of themselves, and laissez-faire leadership, an escape response where the manager withdrawals Request PDF | Narcissistic CEOs and their earnings management | This study investigates the role narcissism in corporate leadership has on the earnings management for a sample of 514 listed CEO positions mitigates the ethical concerns and risks fac-ing firms led by narcissistic leaders. Some researchers have suggested that narcissistic CEOs obtain benefits for their companies because their pursuit of status and visibility can lead to greater Request PDF | Narcissistic CEOs and executive compensation | Narcissism is characterized by traits such as dominance, self-confidence, a sense of entitlement, grandiosity, and low empathy. This study uses unobtrusive measures of the narcissism of chief executive officers (CEOs) - the prominence of the CEO's photograph in annual reports, the CEO's prominence in press releases, the CEO's use of first-person singular pronouns in interviews, and compensation relative to the second-highest-paid firm executive - to examine the effect of CEO narcissism on a firm's Because highly narcissistic CEOs possess lower avoidance motivation in the precrisis period, their firms face greater declines in the onset of the crisis. S414685. This study investigates the role narcissism in corporate leadership has on the earnings management for a sample of 514 listed companies in Bursa Malaysia between year 2009 and 2015. A new study You have downloaded more than the maximum allowable number of APA full-text resources within the last hour, which is in violation of the legally binding terms and The authors used a sample of 92 CEOs of US commercial banks from 2006 to 2014 to investigate how narcissistic the CEOs were and how this character trait impacted organizational risk-taking First, narcissistic CEOs can “stack the deck” by appointing potential admirers to serve on the board (Zhu & Chen, 2015b). We argue that narcissistic CEOs address their need for acclaim by CEOs over the period 1992 to 2012, we provide empirical evidence that ABEM is associated with CEOs' narcissistic trait. firms between 2006 and 2010 Longitudinal analysis CEO narcissism is positively related to new product innovation and radical innovations in product portfolios, but narcissistic CEOs are also more likely to encounter product-harm crises The authors' exclusive focus is on radical innovation. Our anal-yses show that capability cues generally influence executive risk taking, but highly narcissistic CEOs are much less responsive to recent objective perfor-mance than their less narcissistic peers; in contrast, highly narcissistic CEOs are especially bolstered by social Research Summary: While prior studies have predominantly shown that CEO narcissism and hubris exhibit similar effects on various strategic decisions and outcomes, this study aims to explore the mechanisms Request PDF | On Aug 1, 2020, Julia Hautz and others published Narcissistic CEOs in Family Firms: How They Shape Diversification | Find, read and cite all the research you need on ResearchGate We explore how narcissistic CEOs address two powerful and conflicting needs: the need for acclaim and the need to dominate others. Study limitations and future research Firms face mounting pressure to appoint ethical leaders who will avoid unnecessary risk, scandal and crisis. Such CEOs prefer to make decisions based on their own interpretations of the firm's status quo and may fail to create an atmosphere Download Citation | On Aug 1, 2023, Le Chang and others published Narcissistic CEOs, dynamic capability, and green innovation | Find, read and cite all the research you need on ResearchGate Narcissistic CEOs might tend to exhibit overblown views of themselves and like to reinforce favorable self-perceptions [35]. , 2022; Li et al. Narcissistic CEOs may implement aggressive tax policies to achieve personal ambitions such as greater accounting income, self-admiration, or higher CEO remuneration (Lumpkin & Dess, 1996). Psychological studies, such as those we cite in this Narcissistic CEOs tend to increase charitable donations by gaining desire, attention, recognition, and acclaim from external stakeholders. This indicates that the credibility of a firm’s repurchase announcement is negatively influenced by the narcissism of the CEO. " This approach is consistent with prior research on CEO narcissism, and is consistent as well This research examines the relationship between narcissistic personality characteristics in Chief Executive Officers (CEOs) and firms’ innovation outcomes. Then, drawing from prior theory about how narcissists react to stimuli, we hypothesize that highly narcissistic CEOs will be relatively unresponsive to objective indicators of their performance; in contrast, highly narcissistic CEOs will be exceptionally emboldened by social praise (in the forms of media praise and media awards). , 2009: 321); because they are inwardly unsure of themselves, they try to avoid interactions with those in the lower levels inside their organizations. Similarly, research has been increasing into the impact on their firms of narcissistic CEOs (Cragun et al. However, these performance benefits are likely to be canceled out by their other harmful actions for firm performance (“dark sides”) so that firms should carefully monitor the strategic actions of narcissistic CEOs. Such proactive behaviours might enable them to take advantage of market opportunities by foreseeing future demand and acting before competitors (Engelen et al. The findings reveal that after the CEO change, having a narcissistic CEO leads to a negative and statistically significant impact on both the number of violations (model 1) and the amount of violation fines (model 2), further supporting our hypothesis that narcissistic CEOs reduce corporate misconduct. We find that while extant findings exhibit common themes - Highly narcissistic CEOs are much less responsive to recent objective measures of their performance than less narcissistic CEOs. , Chen, 2010) and that CEO wrongdoing increases when there is pressure and opportunity with rationalization (Schnatterly, Ganglof f, & Tuschke, 2018). This was especially so for larger firms where narcissistic leadership Using the rationale of upper echelons theory, the present study introduces CEO narcissism, an important but underexplored psychological trait, and dynamic capability to probe the mechanisms driving green innovation. Authors Qingzhu Gao Corpus ID: 13955483; It ’ s All About Me : Narcissistic CEOs and Their Effects on Company Strategy and Performance @inproceedings{Chatterjee2006ItS, title={It ’ s All About Me : Narcissistic CEOs and Their Effects on Company Strategy and Performance}, author={Arijit Chatterjee and Donald C. Forinstance,anumberofstudieshavedemon miums paid by CEOs of a sample of U. The Narcissist’s Impact "narcissistic CEOs" and CEOs at lower levels of the continuum as "nonnarcissistic CEOs. To better promote the improvement of corporate innovation windows in a multivariate setting, we find that CEO narcissism negatively affects short-term CAR post-repurchase announcements. New research analyzed almost 13,000 LinkedIn profiles of CEOs and found that the more narcissistic a CEO is, the more likely they are to hire narcissists. Keywords: capability cues, narcissism, risk taking, chief executive officers In the vast literature on risk taking, scholars have considered an Research on CEO narcissism has focused on its negative implications on organization outcomes. However, these firms are less likely to follow through. The negative view holds that narcissistic CEOs are blind and arrogant, indifferent to the views of the stakeholders, and ignore the maintenance of the relationship with the stakeholders. Noteworthy examples in the business world further underscore the existence of narcissistic traits among CEOs. Consistent with prior literature, we find that narcissism is a key personality trait that determines strategic choices made by CEOs, with narcissistic CEOs showing a tendency to make riskier strategic choices and to downplay the hazards associated with those choices (Chatterjee and Hambrick, 2011). , narcissistic CEOs emphasize an exploitation orientation. Chiaburu and Theresa Cho and Craig Our data show that narcissistic CEOs can resolve the conflict by trying to have it both ways. However, overcompensating for insecurity with narcissism or an authoritarian This study investigates the role narcissism in corporate leadership has on the earnings management for a sample of 514 listed companies in Bursa Malaysia between year 2009 and 2015. Drawing on psychological research indicating that narcissism is a personality dimension, rather than just a pathological disorder, we argue that narcissism in CEOs is positively related to strategic dynamism and grandiosity, and it Narcissistic CEOs weaken collaboration and integrity November 7 2019, by Katia Savchuk Credit: CC0 Public Domain Some may be bold leaders, but they create a dangerous corporate culture. For both CEOs and directors who had been CEOs, we used established indices to measure narcissism, such as the prominence of their photo in annual reports, how often their name was mentioned in highly narcissistic CEOs are much less responsive to recent objective perfor-mance than their less narcissistic peers; in contrast, highly narcissistic CEOs are especially bolstered by social praise. Actual repur-chases by miums paid by CEOs of a sample of U. However, their greater tendency towards approach motivation enables narcissistic CEOs to increase firm performance in the postcrisis period. Powerful CEOs were able to compensate for greater demographic difference by hunting even harder for narcissism in potential Narcissistic CEOs usually hold bold visions (Galvin et al. This study explores the relationship between CEO narcissism and two distinct facets of CSR (stakeholder management and social issue participation), while Narcissistic CEOs' strong need to dominate decision-making, which is rooted in their inflated self-view of superiority and entitlement, prohibits any free and equal exchange of information and ideas within the TMT. Among a sample of Italian CEOs, those who were highly narcissistic had advanced to CEO more quickly in their careers than those who were not. This article presents a combined meta-analytic and narrative review of CEO narcissism and makes future research recommendations. e. Narcissistic CEOs were shown to have a negative impact on recommendations, with analysts issuing weaker stock recommendations. The regression findings show that enterprises with narcissistic CEOs do better in terms of green innovation. A new study CEOs, with narcissistic CEOs showing a tendency to make riskier strategic choices and to downplay the hazards associated with those choices (Chatterjee and Hambrick, 2011). In this paper, we investigate the relationship between CEO narcissism and corporate misconduct measured through Narcissistic CEOs were shown to have a negative impact on recommendations, with analysts issuing weaker stock recommendations. , 2020), defined as CEOs who have inflated views of themselves and who seek to have those positive self-views Narcissistic CEOs also experience greater turnover in their teams as narcissists clash over time, suggesting potentially substantial costs to their firms and signaling instability to the rest of This study uses unobtrusive measures of the narcissism of chief executive officers (CEOs)—the prominence of the CEO's photograph in annual reports, the CEO's prominence in press releases, the CEO's use of first-person singular pronouns in interviews, and compensation relative to the second-highest-paid firm executive—to examine the effect of CEO narcissism on a firm's In previous research about toxic leaders, Chatman and her colleagues found that narcissistic CEOs have a dark side that reveals itself slowly over time. Narcissistic CEOs often find themselves drawn to strategies that enhance their own image and reputation. riskier decisions, often to attain dramatic results that enhance their image. Such CEOs prefer to make decisions based on their own interpretations of the firm's status quo and may fail to create an atmosphere To explore CEO narcissism and its effects on risk-taking, they pulled together a dataset that included transcripts from 88 public firms and 197 CEOs over 20 years. The market possibly sees the repurchase announcements of narcissistic CEOs as a stock Narcissistic CEOs tend to make. Their exploitative, self-absorbed behavior sets them apart from the charismatic, “transformational” leaders Our study offers a number of contributions. 2010. Additionally, our review identifies five methods of measuring CEO narcissism, each with strengths and weaknesses. You have downloaded more than the maximum allowable number of APA full-text resources within the last hour, which is in violation of the legally binding terms and Thus narcissistic CEOs tend to emphasize external CSR to enhance their public image and generate admiration (Al-Shammari et al. Then, drawing from prior Narcissism is characterized by traits such as dominance, self-confidence, a sense of entitlement, grandiosity, and low empathy. Narcissistic CEOs also engage in opportunity-seeking and forward-looking initiatives (Leonelli et al. There has been increasing research on how CEOs shape stakeholder strategies including nonmarket strategies (see Gamache et al. This is commonly found in bosses, according to We adopt an interactionist logic to study the determinants of risk taking by chief executive officers (CEOs). However, little attention has been paid to its effect on corporate social responsibility (CSR). The results of this study also provide empirical evidence that quality of internal audit can Influence of Narcissistic CEOs on Corporate Social Responsibility (CSR) Choices: The Moderating Role of the Legal Environment Psychol Res Behav Manag. , CEOs) signal to the outside world what is considered acceptable behavior. measure of narcissism, we find that US firms with narcissist CEOs are more likely to make repurchase announcements and announce higher repurchase dollar amounts. Narcissistic CEOs show excessive self-confidence and self-admiration, lack of empathy, and an intense need for prestige and power (Chatterjee and Hambrick, 2007, Oesterleet al. Some narcissistic CEOs are eager to highlight their prominence in organizations and willing to choose differential strategies or behaviors which may lead to potential risks or fluctuating outcomes [40,44]. Narcissistic CEOs have “a pervasive pattern of grandiosity (in fantasy or behavior), need for admiration and a lack of empathy” (American Psychiatric Association, 2000, p. According to a recent study from a highly regarded Stanford University team, the Narcissistic CEO may offer unique, attractive and unexpected benefits to an organization. As such, Narcissistic CEOs prioritize their own needs and desires over the well-being of their firm and its stakeholders. 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. Our anal-yses show that capability cues generally influence executive risk taking, but highly narcissistic CEOs are much less responsive to recent objective perfor-mance than their less narcissistic peers; in contrast, highly narcissistic CEOs are especially bolstered by social As a follow-up, Rovelli and Curnis asked the CEOs to complete the Narcissistic Personality Inventory, in which they had to choose between 40 pairs of statements, such as: 1: Narcissistic CEOs were also less sensitive to objective indicators of their performance, however, and tended to overpay for acquisitions. Managerial Summary: Our study offers an explana-tion as to how CEO narcissism influences firm risk-taking behavior. , 2016). Narcissistic CEOs are usually resilient and can help firms quickly recover in the postcrisis period (Patel & Cooper, 2014). Yet, from a corporate governance perspective, little is known about the extent to which CEO narcissism is more or less prevalent across different ownership forms and This study introduces theories on personalities into governance research on director selection and CEO-board relations and explains why new directors favored by CEOs may indeed be more supportive of the focal CEO’s decision making, strengthening the positive relationship between CEO narcissism and risk-taking spending. Success for such leaders is often attributed to Our review and meta-analytic findings lead to the creation of a framework for CEO narcissism research focused on narcissistic CEO supply, demand, behavior, and consequences. Hambrick and Dan S. results, due to their tendency for overconfidence, risky decision making, and influencing or . Install one as CEO and the company may face higher legal risk, newly published research finds. 2014) due to their part of proving their superiority Indeed, a survey of 402 CEOs from eleven countries found that only 32% of CEOs felt adequately prepared for the job. The role that a CEO’s personality plays in corporate outcomes is a topic of considerable interest, particularly the relation between narcissistic CEOs and performance. Fourth, narcissistic CEOs strive for power and attention and overestimate their own. 5465/AMBPP. Our study extends upper-echelons theory by introducing CEO narcissism as a formal construct for explaining company strategy and performance. Our anal-yses show that capability cues generally influence executive risk taking, but highly narcissistic CEOs are much less responsive to recent objective perfor-mance than their less narcissistic peers; in contrast, highly narcissistic CEOs are especially bolstered by social HYPOTHESIS Influence of Narcissistic CEOs on Corporate Social Responsibility (CSR) Choices: The Moderating Role of the Legal Environment Qingzhu Gao 1, Liangmou Gao1, Dengjie Long 2, Yuege Wang3 1School of Business Administration, Dongbei University of Finance and Economics, Dalian, Liaoning, People’s Republic of China; 2Marxism College, Party Practitioner points. This was especially so for larger firms where narcissistic leadership Prior research has established a positive link between chief executive officer (CEO) narcissism and firm innovation. We suggest that these tendencies may also affect how compensation is Narcissistic CEOs and financial performance Date: July 24, 2014 Source: USC Marshall School of Business Summary: Narcissism, considered by some as the 'dark side of the executive personality,' may Nevertheless, in family firms, more narcissistic CEOs tend to exploit greater innovation opportunities by fostering higher TMT strategic decision comprehensiveness. , 2010) and are not afraid to make tough decisions (Rosenthal & Pittinsky, 2006), which can be desirable during periods of economic crisis or recession. , 2021). Highly narcissistic individuals become CEOs quicker, regardless of whether the firm is a family business or not. Moreover, narcissistic CEOs are inclined to surround themselves with “malleable individuals who are dependent on the CEO” (Chatterjee & Pollock, 2017, p. @inproceedings{Chatterjee2010EXECUTIVEPC, title={EXECUTIVE PERSONALITY, CAPABILITY CUES, AND RISK-TAKING: HOW Narcissistic CEOs who also serve as chairs of the board are adept at controlling how their boards of directors focus their attention, giving the CEO the ability to get their way. They are less concerned about the well-being of Our review and meta-analytic findings lead to the creation of a framework for CEO narcissism research focused on narcissistic CEO supply, demand, behavior, and consequences. This leads us to predict that (i) contemporaneous (future) CEO narcissism is increasing (decreasing) in the compensation Request PDF | On Aug 1, 2020, Julia Hautz and others published Narcissistic CEOs in Family Firms: How They Shape Diversification | Find, read and cite all the research you need on ResearchGate We test our hypotheses using panel data from 120 firms in the Standard & Poor’s 100 index between 2008–2018, covering the personality profiles of 224 CEOs. And while it can be inspirational to work for someone like that, interacting with a narcissist CEO can be torture. Drawing on prior theory about CEO narcissism, we argue that CSR can be a response to leaders' personal needs for attention and image reinforcement and hypothesize that CEO narcissism has positive effects on levels and profile of organizational CSR; additionally, CEO narcissism will reduce the effect of CSR on performance. If you were Gilbert, what steps will you take to Design/methodology/approach. Because highly narcissistic CEOs possess lower avoidance motivation in the precrisis period, their firms face greater declines in the onset of the crisis. (2) The legal environment would attenuate the positive effect of CEO narcissism on CEOs, as individuals holding significant power and influence within organizations, commonly exhibit narcissism due to the inherent characteristics associated with their roles (Grosch, 1994; Holtzman and Donnellan, 2015; Cragun et al. Request PDF | Narcissistic CEOs and their earnings management | This study investigates the role narcissism in corporate leadership has on the earnings management for a sample of 514 listed This overlooks the possibility that narcissistic CEOs may emphasize exploration over exploitation, and vice versa, to gain visibility, affecting the balance between those orientations. eCollection 2023. 712). 54484461 Corpus ID: 145378718; EXECUTIVE PERSONALITY, CAPABILITY CUES, AND RISK-TAKING: HOW NARCISSISTIC CEOS REACT TO THEIR SUCCESSES AND STUMBLES. We model the firm-CEO matching process in which narcissistic CEOs are matched to firms characterized by their shareholders’ risk aversion. For instance, Chatterjee and Hambrick, 2007, Chatterjee and Hambrick, 2011 have shown that CEOs' narcissism was positively related to their firms' strategic dynamism (the degree to which an organization's strategy adapts to changing Family firms’ owners interested in increased innovation by which plan to hire a narcissistic CEO, who will likely lead the firm to exploit a greater number of innovation opportunities, while also trying to keep the risks There is always the option of avoiding a narcissistic CEO, but these days that will prove difficult. , 2016; Yook & Lee, 2020). Narcissistic leaders may not only be toxic, but also contagious. Our review and meta-analytic findings lead to the creation of a framework for CEO narcissism research focused on narcissistic CEO supply, demand, behavior, and consequences. We argue that narcissistic CEOs address their need for acclaim by pursuing celebrity in the media and affiliating with high-status board members, and they address their need to dominate others by employing lowerstatus, younger, and less Family firms are the most widespread organizational form of firms around the world, and their peculiarities might affect the appointment of narcissistic CEOs. Narcissistic CEOs have to seriously take into account risks and make some concessions in the way of satisfying personal preference. Consequently, we might draw incorrect conclusions about how CEO narcissism affects firms' innovation. When a non-narcissistic (narcissistic) CEO is replaced with a narcissistic (non-narcissistic) CEO, the number of corporate violations diminishes (increases). Alongside mounting evidence that narcissistic leaders place organizations at risk, there is a growing consensus that women are more ethical, transparent and risk-averse than men. The pursuit of narcissistic supply may result in a stronger likelihood of a CEO to undertake bold actions with potential detrimental consequences for the CEOs over the period 1992 to 2012, we provide empirical evidence that ABEM is associated with CEOs' narcissistic trait. We introduce the concept of ‘‘capability cues’’—contextual signals that decision makers might reasonably interpret as indicators of their current level of overall ability—arguing that positive cues will induce boldness, while negative cues will induce timidity. Gilbert, a successful business leader, finds that his employees have become complacent following initial business success. Highly narcissistic CEOs undertake challenging or bold actions to obtain frequent praise and admiration. However, it is not widely understood if having a narcissistic CEO is benefit or detriment to the firm. The more these narcissistic leader behaviors are tolerated—even encouraged—the more normalized they may become. , 2019). This is because some of the traits that contribute to workplace advancement among executives—self-confidence, risk tolerance, a focus on goal achievement, and more extraverted personalities—are common to Field studies have shown that narcissistic CEOs are more likely to engage in fraud and other types of white-collar crime, manipulate earnings, and pursue aggressive tax avoidance. Thus, the results suggest that the top We explore how narcissistic CEOs address two powerful and conflicting needs: the need for acclaim and the need to dominate others. To measure the narcissistic trait of a CEO, the study builds on a model using a set of 15 archival indicators. How many t-shirts will an Instagram influencer sell if they have two million followers? Family firms are the most widespread organizational form of firms around the world, and their peculiarities might affect the appointment of narcissistic CEOs. Narcissistic CEOs may tend to focus on firm policies to reduce safety issues and improve cooperation among supply channels and relevant stakeholders, although their motivations might be truly self-focused to avoid blame and negative feedback in a way to get a continuous stream of narcissistic supply. They ran text analyses to identify the emotionality of the board conversations and measure how narcissistic the CEOs at these firms were. Based on a sample of 354 CEOs in 229 S&P 500 firms, our results indicate that firms led by more narcissistic CEOs tend to have a shorter CCC and this effect is weaker in companies led by a female CEO. Hence, narcissistic CEOs have a strong motivation to achieve good performance and lasting motivation to improve corporate performance. 2023 Aug 11:16:3199-3217. This study explores the aspects of the relationship between possible indicators of CEO narcissism and fraud. We find strong support for each of our hypotheses by utilizing a unique data set of corporate board meeting transcripts encompassing 88 public firms and 197 CEOs over 20 years. Narcissism is characterized by traits such as dominance, self-confidence, a sense of entitlement, grandiosity, and low empathy. S. Common perception is that narcissism is highly prevalent among CEOs. In recent years, the study of narcissism in the workplace has exploded. Narcissistic CEOs' strong need to dominate decision-making, which is rooted in their inflated self-view of superiority and entitlement, prohibits any free and equal exchange of information and ideas within the TMT. From the motivational viewpoint, narcissistic CEOs hope to gain recognition and praise from the outside world (Aktas et al. Narcissistic CEOs are often more creative and can discover more opportunities for innovation. It means that a narcissistic CEO miums paid by CEOs of a sample of U. In some firms CEOs have power over the board to greatly influence the director selection, by virtue of also being board chairman, majority shareholder, etc. Narcissistic CEOs are more adventurous, and adventurous managers can alleviate the problem of underinvestment, which is conducive to enhancing corporate value (Thakor and Goel, 2008). Rather than assuming narcissistic CEOs are adept at controlling the attentional foci of boards of directors to get their way. External integration and internal reconfiguration involve considerable costs (e. Using the unobtrusive method and robust panel regression, we find that the narcissistic CEO has positive association with the earnings management. CEO narcissistic unethical behavior (e. The findings suggest that highly narcissistic CEOs do not solely strive to optimize their firm's short-term financial performance, as indicated by a prior finding of a positive association between CEO narcissism and ABEM (Capalbo Beyond the focal firm, narcissistic leaders (e. We adopt an interactionist logic to study the determinants of risk taking by chief executive officers (CEOs). Specifically, we analyze whether narcissism is as prevalent among women CEOs as among men CEOs and whether narcissistic women CEOs engage more, less or equally in risk-taking and questionable behaviors as narcissistic men CEOs. Estimates on a sample of 172 individuals partially confirm the hypotheses. acquiring firms, 2001-2008. CEOs rarely have to buy in the open market as they are paid in stock, so the In this Closer Look, we test some basic assumptions about the relation between narcissism and corporate outcomes using a sample of CEOs whose personality is formally assessed by long Plenty of venerated CEOs, from Oracle’s Larry Ellison to Tesla’s Elon Musk to the late Steve Jobs at Apple, have been described as narcissists. Thus, we refer to CEOs at the high end of the continuum as "narcissistic CEOs" and CEOs at lower levels of the continuum as "nonnarcissistic CEOs. Common perception is that CEO narcissism is highly prevalent, and considerable research suggests that narcissism is associated with worse outcomes. Studies indicate that they’re more likely to engage in questionable tax-avoidance schemes, to manipulate accounting data, to overpay for corporate acquisitions, and to tinuum and distinguish them from less narcissistic CEOs. For instance, Chatterjee and Hambrick, 2007, Chatterjee and Hambrick, 2011 have shown that CEOs' narcissism was positively related to their firms' strategic dynamism (the degree to which an organization's strategy adapts to changing The desire to change the system is a defining element of narcissism. Narcissistic CEOs can be beneficial for firm performance through stimulating innovation. Narcissistic CEOs may increase their firm’s financial leverage to improve financial . Narcissists seek superiority, have very high self-confidence, are often perceived asarrogant, We further note that narcissistic CEOs have an increased ability to do so when they are appointed to be board chair. 2147/PRBM. There is growing evidence that individuals with these characteristics often emerge as leaders, and that narcissistic CEOs may make more impulsive and risky decisions. adjustment and adaption), capability reconstruction may result in transformation failures, the trap that organizations are trying We explore how narcissistic CEOs address two powerful and conflicting needs: the need for acclaim and the need to dominate others. We introduce the concept of "capability cues"-contextual signals that decision makers might reasonably interpret as indicators of their current level of overall ability-arguing that positive cues will induce boldness, while negative cues will induce timidity. Notably, research shows that CEO narcissism is positively related to more radical innovation and breakthrough DOI: 10. To cope with their personality traits they centralize decision-making power, which. iwfki yzu fjjoskin xhbbu troity tfm zixp nvbff pjvwsf sqbbq