IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v64y2024ics1544612324004525.html
   My bibliography  Save this article

CFO narcissism and corporate digital transformation✰

Author

Listed:
  • Yao, Wenyun
  • Ni, Mengjiao
  • Qian, Yuhang
  • Yang, Shujing
  • Cui, Xiaona

Abstract

CFO narcissism plays an essential role in the corporate digital transformation. This study empirically examines the relationship between CFO narcissism and corporate digital transformation using non-financial listed companies in the Shanghai and Shenzhen stock markets from 2010 to 2021 as a research sample. We found that CFOs' narcissistic tendencies promoted a risk-taking spirit, stronger decision-making power, and higher expectations for decision-making results, thus promoting corporate digital transformation. Narcissistic CFOs tend to seek greater power and invest in innovative projects, thereby promoting digital transformation by increasing their power and corporate innovation capabilities. Further heterogeneity tests reveal that the promoting effect of CFO narcissism on digital transformation in companies is more significant in non-state-owned, large, high-leverage enterprises, and when there is a higher level of economic policy uncertainty. Finally, the economic consequences test found that CFO narcissism further amplifies the value-added effect of firms' digital transformation on total factor productivity. This study broadens the applied research on the upper echelons theory and enriches the research on the factors influencing enterprise digital transformation. It provides a decision-making reference for companies to select and hire CFOs and empirical evidence to promote corporate digital transformation and help companies achieve high-quality development.

Suggested Citation

  • Yao, Wenyun & Ni, Mengjiao & Qian, Yuhang & Yang, Shujing & Cui, Xiaona, 2024. "CFO narcissism and corporate digital transformation✰," Finance Research Letters, Elsevier, vol. 64(C).
    • Handle: RePEc:eee:finlet:v:64:y:2024:i:c:s1544612324004525
    DOI: 10.1016/j.frl.2024.105422
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324004525
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.105422?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:64:y:2024:i:c:s1544612324004525. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.