The Dark Side of Power: The Dark Triad in Opportunistic Decision-Making

Lima, Sampaio Franco de

doi:10.14392/asaa.2015080201

Cited by 21 publications

(36 citation statements)

References 47 publications

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“…However, only Machiavellianism is positively related to fraud, which is aligned with the literature (Shafer & Wang, 2011;D'Souza & Lima, 2015;D'Souza & Jones, 2017).…”

Section: Regression Analysis -Experimentssupporting

confidence: 88%

“…Based on literature (Amernic & Craig, 2010;Cao et al, 2012;Chaney et al, 2011;Dechow et al, 2010;D'Souza & Lima, 2015;Hegarty & Sims Jr., 1979;Jones, 2014;Li, 2010;Luchs et al, 2009;Rijsenbilt & Commandeur, 2013), this study aims to investigate the moderating effect of corporate reputation on the relationship between the Dark Tetrad of personality and accounting information quality.…”

Section: Contextualizationmentioning

confidence: 99%

“…Narcissists are described as optimistic egoists, and individuals with strong narcissistic traits have some features such as callous manipulation, attention seeking, grandiosity, egotism, risk-taking, overconfidence, unrealistic optimism, impulsivity, and entitlement (Chabrol, Leeuwen, Rodgers, & Séjourné, 2009;D'Souza & Lima, 2015;Jones, 2013;, Southard et al, 2015.…”

Section: The Dark Tetrad Of Personality: the Lack Of Empathymentioning

confidence: 99%

“…This finding does not reject hypothesis H1. Therefore, as noted in abnormal accruals, real activities manipulation occurs when CEOs need to improve firm performance for their own benefit, which is emphasized by the dark personality, because it is related to unethical behavior and poor moral judgment (Healy & Wahlen, 1999;Lo, 2008;Shafer & Wang, 2011;D'Souza & Lima, 2015;D'Souza & Jones, 2017).…”

Section: Regression Analysis -Archivalmentioning

confidence: 99%

“…Hence, firms that have CEOs with strong dark personalities engage more in earnings management by classification shifting. So, they deceive investors by changing the accounting information, and so the investors' perception of the firm's performance would be modified, affecting valuation (McVay, 2006;Shafer & Wang, 2011;D'Souza & Lima, 2015).…”

Section: Regression Analysis -Archivalmentioning

confidence: 99%

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The dark tetrad of personality and the accounting information quality: the moderating effect of corporate reputation

Góis¹

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Góis, A. D. (2017). The dark tetrad of personality and the accounting information quality: The moderating effect of corporate reputation. Doctoral Dissertation, Faculty of Economics, Administration and Accounting (FEA), University of São Paulo (USP). The Upper Echelons Theory states that CEO characteristics, among them the Dark Tetrad (narcissism, Machiavellianism, psychopathy, and sadism) of personality, affect decisionmaking. In an accounting context, the presence of the Dark Tetrad of personality in CEOs can reduce accounting information quality because the personalities of the Dark Tetrad are associated with callousness, impulsivity, manipulation, criminality, grandiosity, enjoyment of cruelty, and misconduct, therefore CEOs with these traits are likely to manipulate earnings or commit fraud. However, companies with strong reputation due to the credibility and trustworthiness built into the company values and culture can reduce the effect of dark personality in accounting information quality. In such context, this study aims to investigate the moderating effect of corporate reputation on the relationship between the Dark Tetrad of personality and accounting information quality. The main assumption is that CEOs with strong Dark Tetrad traits engage more in earnings management and fraud; however, in companies with strong reputation, earnings management and fraud would be lower due to the values, structures, and formal or informal rules built around corporate reputation. This implies that companies with strong reputation tend to suppress the opportunistic actions of CEOs, enabling better accounting information quality. The research design was divided into two parts: the first part involved an archival method and the second part used an experiment method. For the archival method, I analyzed 434 firms (2,645 observations) with headquarters in the United States, covering the period between 2010 and 2017, using abnormal accruals, real earnings management, and classification shifting for earnings management, the overall Fortune's World's Most Admired Companies score for reputation, CEO speeches, and dark personality literature to measure the Dark Tetrad of personality. I ran regressions to test the research hypotheses and found that the Dark Tetrad of personality shows a positive relationship with all types of earnings management. Regarding reputation, only abnormal accruals show a negative relationship with corporate reputation. In turn, the interaction between the Dark Tetrad of personality and corporate reputation is negatively related to all types of earnings management. For the experimental method, I used a 2x2 between-subjects experiment design involving 101 MBA students who, in general, have had experience in management in Brazil and the United States of America. To measure the Dark Tetrad of personality, I used the Short-Dark Triad (Jones & Paulhus, 2014) and the Assessment of Sadistic Personality (Plouffe et al., 2017). For reputation, I adapted the scenarios from Goldberg and Hartwick (1990) and Lafferty (2...

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“…However, only Machiavellianism is positively related to fraud, which is aligned with the literature (Shafer & Wang, 2011;D'Souza & Lima, 2015;D'Souza & Jones, 2017).…”

Section: Regression Analysis -Experimentssupporting

confidence: 88%

Section: Contextualizationmentioning

confidence: 99%

Section: The Dark Tetrad Of Personality: the Lack Of Empathymentioning

confidence: 99%

Section: Regression Analysis -Archivalmentioning

confidence: 99%

Section: Regression Analysis -Archivalmentioning

confidence: 99%

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The dark tetrad of personality and the accounting information quality: the moderating effect of corporate reputation

Góis¹

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Towards sustainable businesses in Latin America: The role of worker's Dark Triad personality traits

Jahanshahi

Mendoza

Vicuña

2023

Sustainable Development

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Having sustainable businesses becomes priority for many Latin American countries these years. Socially responsible behaviors (SRBs) of employees in the workplace plays important roles in making businesses more sustainability oriented. The main aims of this research to identify those employees, which involve less in two types of SRBs: societal behaviors and sustainability‐oriented behaviors at the workplace by considering their Dark Triad personality traits. By using survey‐based data from 550 workers in Peru and Ecuador, we found a negative relationship between workers Dark Triad personality traits (Machiavilism and Psychopathy) and their socially responsible behaviors in the workplace. Furthermore, our results show that workers with higher level of Machiavilism and psychopathy has lower level of environmental concerns, which in turn reduce their intentions to involve in socially responsible behaviors in the workplace. Our study advances sustainable business research in Latin America by providing workers Machiavellianism and Psychopathy as a novel predictor of socially responsible behaviors of employees at the workplace.

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Dark Triad Managerial Personality and Financial Reporting Manipulation

2021

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We investigate the relationship between the dark triad personality traits (Machiavellianism, narcissism, and psychopathy) of managers and the practice of reporting manipulation using a primary survey of 837 professionals working in accounting and finance departments. We find that (a) managers who exhibit dark personality traits are associated with a higher prevalence of fraudulent accounting practices in their accounting and finance departments and (b) traditional risk management mechanisms are only partially effective in mitigating this effect. Internal audits are effective in curtailing the negative behavior of managers with dark triad traits only if these internal audits are outsourced and performed by independent external personnel but not if they are conducted by internal personnel. This suggests that managers with dark triad traits are able to manipulate other employees quite effectively. Consequently, having external personnel perform the auditing task provides a safeguard against such unethical practices and manipulation. This finding has strong practical implications, as it provides support for outsourcing internal audits rather than keeping them in-house.

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The Dark Side of Power: The Dark Triad in Opportunistic Decision-Making

Cited by 21 publications

References 47 publications

The dark tetrad of personality and the accounting information quality: the moderating effect of corporate reputation

The dark tetrad of personality and the accounting information quality: the moderating effect of corporate reputation

Towards sustainable businesses in Latin America: The role of worker's Dark Triad personality traits

Dark Triad Managerial Personality and Financial Reporting Manipulation

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