Journal ArticleDOI
CFO Narcissism and Financial Reporting Quality: CFO NARCISSISM AND FINANCIAL REPORTING QUALITY
TLDR
In this article, the effect of CFO narcissism, as measured by signature size, on financial reporting quality was investigated, and it was shown that narcissism predicts misreporting behavior, and that signature size predicted misreporting through its association with narcissism.Abstract:
We investigate the effect of CFO narcissism, as measured by signature size, on financial reporting quality. Experimentally, we validate that narcissism predicts misreporting behavior, and that signature size predicts misreporting through its association with narcissism. Empirically, we examine notarized CFO signatures and find CFO narcissism is associated with more earnings management, less timely loss recognition, weaker internal control quality, and a higher probability of restatements. The results are consistent for within-firm comparisons focusing on CFO changes and are robust to controlling for CFO overconfidence and CEO narcissism. The results highlight the importance of CFO characteristics in the domain of financial reporting decisions.read more
Citations
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Narcissism is a bad sign: CEO signature size, investment, and performance
TL;DR: Using the size of CEO signatures in SEC filings to measure individual narcissism, this article found that CEO narcissism is associated with several negative firm outcomes and that narcissistic CEOs enjoy higher absolute and relative compensation.
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Making CEO Narcissism Research Great: A Review and Meta-Analysis of CEO Narcissism:
TL;DR: In this paper, the authors presented a study on the effect of narcissism on the behavior of chief executive officers (CEO) and found that this multifaceted personality trait affects CEO behavior.
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“See You in Court”: How CEO narcissism increases firms' vulnerability to lawsuits
TL;DR: This paper found that narcissistic CEOs subject their organizations to undue legal risk because they are overconfident about their ability to win and less sensitive to the costs to their organizations of such litigation.
Journal ArticleDOI
Narcissism Is a Bad Sign: CEO Signature Size, Investment, and Performance
TL;DR: The authors used the size of CEO signatures in SEC filings to measure individual narcissism and found that it is associated with several negative firm outcomes, such as lower innovative productivity and lower financial productivity in the form of profitability and operating cash flows.
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Hear Me Write: Does CEO Narcissism Affect Disclosure?
TL;DR: This paper examined the influence of CEO personality traits on corporate disclosures by analyzing the tone of earnings announcements for a sample of Fortune 500 CEOs over nearly two decades and found that more narcissistic CEOs tend to reinforce their grandiose self-image by issuing more positive earnings announcements but this desire wanes with CEO age.
References
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Upper Echelons: The Organization as a Reflection of Its Top Managers
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Earnings Management During Import Relief Investigations
TL;DR: In this article, the authors test whether firms that would benefit from import relief attempt to decrease earnings through earnings management during import relief investigations by the United States International Trade Commission (ITC).