Narcissistic Chief Executive Officers and Their Effects on R&D Investment and Firm Performance: The Moderating Role of Managerial Discretion
The impact of the chief executive officer (CEO) narcissism on a firm’s performance has gained attention from the academic community. However, the extant literature has largely ignored the mediating mechanism of research and development (R&D) investment and the moderating roles of managerial disc...
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| Format: | Article |
| Language: | English |
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MDPI AG
2024-11-01
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| Series: | Behavioral Sciences |
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| Online Access: | https://www.mdpi.com/2076-328X/14/11/1115 |
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| author | Qingzhu Gao Liangmou Gao Guangyan Zhang |
| author_facet | Qingzhu Gao Liangmou Gao Guangyan Zhang |
| author_sort | Qingzhu Gao |
| collection | DOAJ |
| description | The impact of the chief executive officer (CEO) narcissism on a firm’s performance has gained attention from the academic community. However, the extant literature has largely ignored the mediating mechanism of research and development (R&D) investment and the moderating roles of managerial discretion. Additionally, the measurement of CEO narcissism is rarely disclosed in the public database. Compiling a CEO narcissism index from a video survey, we systematically explore the effect of CEO narcissism on firm performance, the mediating role of R&D investment, and the moderating role of managerial discretion. Based on the upper echelons theory, using a sample of 183 Chinese A-share listed manufacturing firms from 2011 to 2019, we found that CEO narcissism positively and significantly impacts R&D investment and firm performance, and then R&D investment mediated the relationships between CEO narcissism and firm performance. In addition, we found that managerial discretion could affect the relationship between CEO narcissism and R&D investment. Specifically, CEO duality and CEO ownership will strengthen the positive influence of a CEO’s narcissism in corporate R&D investment. Our results suggest that CEO narcissism appears to be a stimulus to corporate R&D investment; thus, in recruiting top executives, their psychological traits, especially narcissism, should be given special consideration. |
| format | Article |
| id | doaj-art-157cd1b06fb344f78e687d8dad52f4b1 |
| institution | OA Journals |
| issn | 2076-328X |
| language | English |
| publishDate | 2024-11-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Behavioral Sciences |
| spelling | doaj-art-157cd1b06fb344f78e687d8dad52f4b12025-08-20T01:53:44ZengMDPI AGBehavioral Sciences2076-328X2024-11-011411111510.3390/bs14111115Narcissistic Chief Executive Officers and Their Effects on R&D Investment and Firm Performance: The Moderating Role of Managerial DiscretionQingzhu Gao0Liangmou Gao1Guangyan Zhang2School of Business Administration, Dongbei University of Finance and Economics, Dalian 116025, ChinaSchool of Business Administration, Dongbei University of Finance and Economics, Dalian 116025, ChinaDepartment of Management, Kyrgyz State University Named After I. Arabaev, Bishkek 720026, KyrgyzstanThe impact of the chief executive officer (CEO) narcissism on a firm’s performance has gained attention from the academic community. However, the extant literature has largely ignored the mediating mechanism of research and development (R&D) investment and the moderating roles of managerial discretion. Additionally, the measurement of CEO narcissism is rarely disclosed in the public database. Compiling a CEO narcissism index from a video survey, we systematically explore the effect of CEO narcissism on firm performance, the mediating role of R&D investment, and the moderating role of managerial discretion. Based on the upper echelons theory, using a sample of 183 Chinese A-share listed manufacturing firms from 2011 to 2019, we found that CEO narcissism positively and significantly impacts R&D investment and firm performance, and then R&D investment mediated the relationships between CEO narcissism and firm performance. In addition, we found that managerial discretion could affect the relationship between CEO narcissism and R&D investment. Specifically, CEO duality and CEO ownership will strengthen the positive influence of a CEO’s narcissism in corporate R&D investment. Our results suggest that CEO narcissism appears to be a stimulus to corporate R&D investment; thus, in recruiting top executives, their psychological traits, especially narcissism, should be given special consideration.https://www.mdpi.com/2076-328X/14/11/1115CEO personalityCEO narcissismR&D investmentfirm performancemanagerial discretion |
| spellingShingle | Qingzhu Gao Liangmou Gao Guangyan Zhang Narcissistic Chief Executive Officers and Their Effects on R&D Investment and Firm Performance: The Moderating Role of Managerial Discretion Behavioral Sciences CEO personality CEO narcissism R&D investment firm performance managerial discretion |
| title | Narcissistic Chief Executive Officers and Their Effects on R&D Investment and Firm Performance: The Moderating Role of Managerial Discretion |
| title_full | Narcissistic Chief Executive Officers and Their Effects on R&D Investment and Firm Performance: The Moderating Role of Managerial Discretion |
| title_fullStr | Narcissistic Chief Executive Officers and Their Effects on R&D Investment and Firm Performance: The Moderating Role of Managerial Discretion |
| title_full_unstemmed | Narcissistic Chief Executive Officers and Their Effects on R&D Investment and Firm Performance: The Moderating Role of Managerial Discretion |
| title_short | Narcissistic Chief Executive Officers and Their Effects on R&D Investment and Firm Performance: The Moderating Role of Managerial Discretion |
| title_sort | narcissistic chief executive officers and their effects on r d investment and firm performance the moderating role of managerial discretion |
| topic | CEO personality CEO narcissism R&D investment firm performance managerial discretion |
| url | https://www.mdpi.com/2076-328X/14/11/1115 |
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