The Impact of CEO Narcissism on Earnings Management.

We provide the first empirical test of the relation between CEO narcissism and earnings manipulation. We test the hypothesis that narcissistic leaders over‐identify themselves with the organizations they lead and expend considerable effort to achieve their goals, including by engaging in unethical b...

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Detalles Bibliográficos
Publicado en:	Abacus Vol. 54; no. 2; pp. 210 - 227
Autores principales:	Capalbo, Francesco, Frino, Alex, Lim, Ming Ying, Mollica, Vito, Palumbo, Riccardo
Formato:	Artículo
Publicado:	Wiley-Blackwell Jun2018
Materias:	Chief executive officers Earnings management Narcissism Wages Leaders Key performance indicators (Management) Industrial management Corruption Attitude (Psychology)
Acceso en línea:	Ver este registro en EBSCOhost

Descripción
Sumario:	We provide the first empirical test of the relation between CEO narcissism and earnings manipulation. We test the hypothesis that narcissistic leaders over‐identify themselves with the organizations they lead and expend considerable effort to achieve their goals, including by engaging in unethical behaviour. Earnings announcements are highly anticipated information releases by organizations. They are a key performance indicator used to evaluate the performance of CEOs. This study examines the use of first person singular pronouns by CEOs in response to questions at analyst conferences to measure narcissism. We provide evidence that firms with narcissistic CEOs engage in accruals management to manage earnings positively, highlighting the important effect of CEO personality on accounting choices.