Recruiting Dark Personalities for Earnings Management

Harris, Ling L.; Jackson, Scott B.; Owens, Joel; Seybert, Nicholas

doi:10.1007/s10551-021-04761-z

Cited by 7 publications

(2 citation statements)

References 91 publications

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“…In addition, they are prone to overinvest in R&D and M&A; yet firms led by these individuals experience lower profitability and operating cash flows (Ham et al, 2018). In general, a wide body of research shows that narcissistic CEOs are likely to engage in unethical conduct (e.g., Amernic & Craig, 2010;Blickle et al, 2006;Buchholz et al, 2020;Duchon & Drake, 2009;Harris et al, 2022;Rijsenbilt & Commandeur, 2013); they engage in accrual-based and real earnings management to achieve their goals (Buchholz et al, 2020;Capalbo et al, 2018;Ham et al, 2017;Olsen et al, 2014). Indeed, narcissistic executives are more likely to commit white-collar crime (Blickle et al, 2006).…”

Section: The Consequences Of Ceo Narcissismmentioning

confidence: 99%

CEO Narcissism and Credit Ratings

Hou,

Fairchild,

Perotti

2024

J Bus Ethics

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Prior research has investigated how narcissistic executives affect firm policies and outcomes and how these executives influence colleagues and followers. However, almost no research exists concerning the impact of narcissistic executives on external agents. We examine the case of credit ratings—where analysts are required to assess management competence and where undue management influence is a concern—to determine whether narcissistic CEOs exert an effect on their firm’s rating. Using the size of the CEO’s personal signature to measure narcissism, we find that CEO narcissism is associated with worse credit ratings. This effect is attenuated when firms face greater financial constraints, higher industry competition, and more concentrated institutional ownership. Our study contributes to the growing body of literature on CEO narcissism and suggests that these manipulative individuals are unable to exert an obvious upward influence on credit rating agencies.

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Section: The Consequences Of Ceo Narcissismmentioning

confidence: 99%

CEO Narcissism and Credit Ratings

Hou,

Fairchild,

Perotti

2024

J Bus Ethics

View full text Add to dashboard Cite

show abstract

“…Various characteristics of a person with dark personality traits seem to be advantageous when rising to leadership positions in organizations (Babiak & Hare, 2006;Rovelli & Curnis, 2020). Organizations might even hire managers with dark personality traits because their willingness to push ethical boundaries aligns with organizational objectives (Harris et al, 2021).…”

Section: Introductionmentioning

confidence: 99%