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CEO narcissism and corporate misconduct

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  • Donker, Han
  • Nofsinger, John
  • Shank, Corey A.

Abstract

We find evidence that corporations with narcissistic CEOs have fewer corporate misconduct violations and pay lower fines in penalties. When a non-narcissistic (narcissistic) CEO is replaced with a narcissistic (non-narcissistic) CEO, the number of corporate violations diminishes (increases).

Suggested Citation

  • Donker, Han & Nofsinger, John & Shank, Corey A., 2023. "CEO narcissism and corporate misconduct," Economics Letters, Elsevier, vol. 228(C).
    • Handle: RePEc:eee:ecolet:v:228:y:2023:i:c:s0165176523002033
    DOI: 10.1016/j.econlet.2023.111178
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    References listed on IDEAS

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    1. Ulrike Malmendier & Geoffrey Tate, 2005. "CEO Overconfidence and Corporate Investment," Journal of Finance, American Finance Association, vol. 60(6), pages 2661-2700, December.
    2. Antoinette Rijsenbilt & Harry Commandeur, 2013. "Narcissus Enters the Courtroom: CEO Narcissism and Fraud," Journal of Business Ethics, Springer, vol. 117(2), pages 413-429, October.
    3. Karl V. Lins & Henri Servaes & Ane Tamayo, 2017. "Social Capital, Trust, and Firm Performance: The Value of Corporate Social Responsibility during the Financial Crisis," Journal of Finance, American Finance Association, vol. 72(4), pages 1785-1824, August.
    4. Al-Shammari, Marwan & Rasheed, Abdul & Al-Shammari, Hussam A., 2019. "CEO narcissism and corporate social responsibility: Does CEO narcissism affect CSR focus?," Journal of Business Research, Elsevier, vol. 104(C), pages 106-117.
    5. Charles Ham & Nicholas Seybert & Sean Wang, 2018. "Narcissism is a bad sign: CEO signature size, investment, and performance," Review of Accounting Studies, Springer, vol. 23(1), pages 234-264, March.
    6. Heese, Jonas & Pérez-Cavazos, Gerardo & Peter, Caspar David, 2022. "When the local newspaper leaves town: The effects of local newspaper closures on corporate misconduct," Journal of Financial Economics, Elsevier, vol. 145(2), pages 445-463.
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    Cited by:

    1. Wang, Kedi & Wu, Chen, 2023. "Financial-judicial specialization and corporate misconduct: Evidence from the establishment of the Shanghai Financial Court," Economics Letters, Elsevier, vol. 229(C).

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    More about this item

    Keywords

    CEO behavior; Narcissism; Corporate misconduct;
    All these keywords.

    JEL classification:

    • G4 - Financial Economics - - Behavioral Finance

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