Department of Economics and Business Economics

Do narcissistic CEOs rock the boat?

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

Standard

Do narcissistic CEOs rock the boat? / Aabo, Tom; Hoejland, Frederik; Pedersen, Jesper.

In: Review of Behavioral Finance, Vol. 13, No. 2, 04.2021, p. 141-164.

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

Harvard

Aabo, T, Hoejland, F & Pedersen, J 2021, 'Do narcissistic CEOs rock the boat?', Review of Behavioral Finance, vol. 13, no. 2, pp. 141-164. https://doi.org/10.1108/RBF-09-2019-0118

APA

Aabo, T., Hoejland, F., & Pedersen, J. (2021). Do narcissistic CEOs rock the boat? Review of Behavioral Finance, 13(2), 141-164. https://doi.org/10.1108/RBF-09-2019-0118

CBE

Aabo T, Hoejland F, Pedersen J. 2021. Do narcissistic CEOs rock the boat?. Review of Behavioral Finance. 13(2):141-164. https://doi.org/10.1108/RBF-09-2019-0118

MLA

Aabo, Tom, Frederik Hoejland and Jesper Pedersen. "Do narcissistic CEOs rock the boat?". Review of Behavioral Finance. 2021, 13(2). 141-164. https://doi.org/10.1108/RBF-09-2019-0118

Vancouver

Aabo T, Hoejland F, Pedersen J. Do narcissistic CEOs rock the boat? Review of Behavioral Finance. 2021 Apr;13(2):141-164. Epub 2020. doi: 10.1108/RBF-09-2019-0118

Author

Aabo, Tom ; Hoejland, Frederik ; Pedersen, Jesper. / Do narcissistic CEOs rock the boat?. In: Review of Behavioral Finance. 2021 ; Vol. 13, No. 2. pp. 141-164.

Bibtex

@article{7ad7e0fc525c46cfbf73286815f91f7a,
title = "Do narcissistic CEOs rock the boat?",
abstract = "Purpose: The purpose of this paper is to investigate the role of narcissistic supply for the association between CEO narcissism and corporate risk taking. Design/methodology/approach: The authors investigate a sample of 281 non-financial S&P 1500 firms and a corresponding 457 CEOs in the 10-yr period 2006–2015. Findings: The association between CEO narcissism and corporate risk taking depends on the admiration, attention, and affirmation of own superiority (“narcissistic supply”) that the CEO receives given her/his current position. Thus, a narcissistic CEO with an insufficient narcissistic supply (small firm/small compensation) will crave for more and take more risks (“rock the boat”) while a narcissistic CEO with a sufficient narcissistic supply (large firm/large compensation) will protect the status quo and be reluctant to take new risks. Specifically, the authors find that a change from a slightly narcissistic CEO to a strongly narcissistic CEO, for positions entailing limited (abundant) narcissistic supply, is associated with an increase (a decrease) in corporate risk of 6%–8% (11%–27%). Originality/value: Previous research indicates a positive association between CEO narcissism and corporate risk taking in specific domains such as M&A and R&D activities. This paper provides a novel contribution to the existing literature by identifying and assessing the important role of narcissistic supply for the association between CEO narcissism and corporate risk taking in general.",
keywords = "Behavioral corporate finance, CEO narcissism, Corporate risk, Narcissistic supply",
author = "Tom Aabo and Frederik Hoejland and Jesper Pedersen",
year = "2021",
month = apr,
doi = "10.1108/RBF-09-2019-0118",
language = "English",
volume = "13",
pages = "141--164",
journal = "Review of Behavioral Finance",
issn = "1940-5979",
publisher = "Emerald Group Publishing",
number = "2",

}

RIS

TY - JOUR

T1 - Do narcissistic CEOs rock the boat?

AU - Aabo, Tom

AU - Hoejland, Frederik

AU - Pedersen, Jesper

PY - 2021/4

Y1 - 2021/4

N2 - Purpose: The purpose of this paper is to investigate the role of narcissistic supply for the association between CEO narcissism and corporate risk taking. Design/methodology/approach: The authors investigate a sample of 281 non-financial S&P 1500 firms and a corresponding 457 CEOs in the 10-yr period 2006–2015. Findings: The association between CEO narcissism and corporate risk taking depends on the admiration, attention, and affirmation of own superiority (“narcissistic supply”) that the CEO receives given her/his current position. Thus, a narcissistic CEO with an insufficient narcissistic supply (small firm/small compensation) will crave for more and take more risks (“rock the boat”) while a narcissistic CEO with a sufficient narcissistic supply (large firm/large compensation) will protect the status quo and be reluctant to take new risks. Specifically, the authors find that a change from a slightly narcissistic CEO to a strongly narcissistic CEO, for positions entailing limited (abundant) narcissistic supply, is associated with an increase (a decrease) in corporate risk of 6%–8% (11%–27%). Originality/value: Previous research indicates a positive association between CEO narcissism and corporate risk taking in specific domains such as M&A and R&D activities. This paper provides a novel contribution to the existing literature by identifying and assessing the important role of narcissistic supply for the association between CEO narcissism and corporate risk taking in general.

AB - Purpose: The purpose of this paper is to investigate the role of narcissistic supply for the association between CEO narcissism and corporate risk taking. Design/methodology/approach: The authors investigate a sample of 281 non-financial S&P 1500 firms and a corresponding 457 CEOs in the 10-yr period 2006–2015. Findings: The association between CEO narcissism and corporate risk taking depends on the admiration, attention, and affirmation of own superiority (“narcissistic supply”) that the CEO receives given her/his current position. Thus, a narcissistic CEO with an insufficient narcissistic supply (small firm/small compensation) will crave for more and take more risks (“rock the boat”) while a narcissistic CEO with a sufficient narcissistic supply (large firm/large compensation) will protect the status quo and be reluctant to take new risks. Specifically, the authors find that a change from a slightly narcissistic CEO to a strongly narcissistic CEO, for positions entailing limited (abundant) narcissistic supply, is associated with an increase (a decrease) in corporate risk of 6%–8% (11%–27%). Originality/value: Previous research indicates a positive association between CEO narcissism and corporate risk taking in specific domains such as M&A and R&D activities. This paper provides a novel contribution to the existing literature by identifying and assessing the important role of narcissistic supply for the association between CEO narcissism and corporate risk taking in general.

KW - Behavioral corporate finance

KW - CEO narcissism

KW - Corporate risk

KW - Narcissistic supply

UR - http://www.scopus.com/inward/record.url?scp=85083549546&partnerID=8YFLogxK

U2 - 10.1108/RBF-09-2019-0118

DO - 10.1108/RBF-09-2019-0118

M3 - Journal article

AN - SCOPUS:85083549546

VL - 13

SP - 141

EP - 164

JO - Review of Behavioral Finance

JF - Review of Behavioral Finance

SN - 1940-5979

IS - 2

ER -