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Dark Triad Personality Traits and Selective Hedging

Author

Listed:
  • Matthias Pelster

    (Paderborn University)

  • Annette Hofmann

    (St. John’s University)

  • Nina Klocke

    (Paderborn University)

  • Sonja Warkulat

    (Paderborn University)

Abstract

We study the relationship between risk managers’ dark triad personality traits (Machiavellianism, narcissism, and psychopathy) and their selective hedging activities. Using a primary survey of 412 professional risk managers, we find that managers with dark personality traits are more likely to engage in selective hedging than those without. This effect is particularly pronounced for older, male, and less experienced risk managers. The effect is also stronger in smaller firms, less centralized risk management departments, and family-owned firms.

Suggested Citation

  • Matthias Pelster & Annette Hofmann & Nina Klocke & Sonja Warkulat, 2023. "Dark Triad Personality Traits and Selective Hedging," Journal of Business Ethics, Springer, vol. 182(1), pages 261-286, January.
    • Handle: RePEc:kap:jbuset:v:182:y:2023:i:1:d:10.1007_s10551-021-04985-z
    DOI: 10.1007/s10551-021-04985-z
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    Cited by:

    1. Christoffersen, Jeppe & Holzmeister, Felix & Plenborg, Thomas, 2023. "What is risk to managers?," Journal of Behavioral and Experimental Finance, Elsevier, vol. 40(C).
    2. Nooshabadi, Javad E. & Mockaitis, Audra I. & Chugh, Richa, 2024. "Chief executive officer’s dark triad personality and firm's degree of internationalization: The mediating role of ambidexterity," International Business Review, Elsevier, vol. 33(4).

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    More about this item

    Keywords

    Managers; Personality traits; Corporate risk management; Selective hedging;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other

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