Financial performance and tone of financial disclosures: The moderating effect of CEO narcissism

Gilberto Marquez Illescas, Stephen J. Sauer, Allan A. Zebedee and Linying Zhou

Accounting and Finance, 2025, vol. 65, issue 1, 691-712

Abstract: Using an experimental approach, this study shows that the effect of financial performance on tone is weaker in firms led by a more narcissistic chief executive officer (CEO) because narcissistic CEOs inflate the tone relatively more when reporting worse results. This suggests that factoring CEO narcissism into the assessment of the tone of financial disclosures is especially relevant in situations in which firms report negative financial information. Our findings demonstrate that the impact of CEO narcissism may not only exert a direct influence on firm‐level outcomes, such as the tone of financial disclosures, but it could also moderate the influence of other factors.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/acfi.13344

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:acctfi:v:65:y:2025:i:1:p:691-712

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0810-5391

Access Statistics for this article

Accounting and Finance is currently edited by Robert Faff

More articles in Accounting and Finance from Accounting and Finance Association of Australia and New Zealand Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().