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The Role of Narcissistic Hypocrisy in the Development of Accounting Estimates

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  • Matthew J. Hayes
  • Philip M. J. Reckers

Abstract

In an experiment including experienced managers, we investigate how supervisor and subordinate narcissism influence a supervisor's review of a subordinate's accounting estimate. While narcissistic supervisors express greater liking for narcissistic subordinates (narcissistic tolerance), they nonetheless reject and revise the accounting estimates of narcissistic subordinates to a greater extent than they reject estimates of non‐narcissistic subordinates (narcissistic hypocrisy), even when doing so inhibits the supervisor's ability to reach a profit target. Our findings contribute to extant research in accounting and psychology. We demonstrate that narcissistic hypocrisy extends beyond the evaluation of others and alters narcissists' willingness to rely on other narcissists in a meaningful financial reporting decision. We also find that narcissistic hypocrisy is robust across age, gender, and supervisory experience. Le rôle de l'hypocrisie narcissique dans l’élaboration d'estimations comptables Les auteurs mènent auprès de gestionnaires chevronnés une expérience visant à déterminer en quoi le narcissisme des supérieurs et des subalternes influe sur l'examen auquel les supérieurs soumettent les estimations comptables des subalternes. Bien que les supérieurs narcissiques semblent apprécier davantage les subalternes narcissiques (tolérance narcissique), ils rejettent et révisent néanmoins les estimations des subalternes narcissiques plus souvent qu'ils ne rejettent les estimations des subalternes non narcissiques (hypocrisie narcissique), même lorsque cette décision nuit à leur capacité d'atteindre un objectif de profit. Les résultats de l’étude viennent enrichir les recherches existantes en comptabilité et en psychologie. Les auteurs démontrent que l'hypocrisie narcissique s’étend au‐delà de l’évaluation d'autrui et modifie la mesure dans laquelle les narcissiques sont disposés à s'appuyer sur d'autres narcissiques dans une décision importante en matière d'information financière. Ils observent également que leurs conclusions quant à l'hypocrisie narcissique persistent quels que soient l’âge, le sexe et l'expérience de supervision.

Suggested Citation

  • Matthew J. Hayes & Philip M. J. Reckers, 2020. "The Role of Narcissistic Hypocrisy in the Development of Accounting Estimates," Contemporary Accounting Research, John Wiley & Sons, vol. 37(2), pages 1199-1216, June.
    • Handle: RePEc:wly:coacre:v:37:y:2020:i:2:p:1199-1216
    DOI: 10.1111/1911-3846.12552
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    References listed on IDEAS

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