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Give me uncertainty, and I will shine: CEO narcissism and corporate performance

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Listed:
  • Aabo, Tom
  • Kirch, Theodor Roe
  • Thomsen, Katrine Høj Stadil

Abstract

CEO narcissism is an established fact in the corporate world. We argue that uncertainty moderates the relationship between CEO narcissism and corporate performance. Thus, we hypothesize that the decisiveness and craving for attention of the narcissistic CEO improve corporate performance during periods of high uncertainty, while these features of narcissism are not needed and indeed are disadvantageous during periods of low uncertainty. Our empirical results support our hypothesis. Our findings are important in understanding the context specificity of the advantages and disadvantages of CEO narcissism in an empirical corporate setting and thus important for CEO selection and CEO management.

Suggested Citation

  • Aabo, Tom & Kirch, Theodor Roe & Thomsen, Katrine Høj Stadil, 2024. "Give me uncertainty, and I will shine: CEO narcissism and corporate performance," Global Finance Journal, Elsevier, vol. 62(C).
    • Handle: RePEc:eee:glofin:v:62:y:2024:i:c:s1044028324000632
    DOI: 10.1016/j.gfj.2024.100991
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    More about this item

    Keywords

    Behavioral corporate finance; CEO narcissism; Uncertainty; Corporate performance;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G40 - Financial Economics - - Behavioral Finance - - - General

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