CEO narcissism and asymmetric cost behavior

Heung-Jae Jeon

The North American Journal of Economics and Finance, 2024, vol. 70, issue C

Abstract: This research investigates the relationship between chief executive officer (CEO) narcissism and asymmetric cost behavior. Based on the expectation that CEOs’ narcissism leads to myopic management, I replicate the existence of cost stickiness in a large sample of U.S. public firms and find that narcissistic CEOs exhibit a lower degree of cost stickiness. Additionally, I find that the negative effect of CEO narcissism on cost stickiness is boosted under poor past performance and when firm uncertainty is high. Several robustness tests, including alternative measurements of costs and narcissism, confirm the validity of the results. The findings of this study contribute to the current discussion about the role of narcissistic personalities of CEOs and the behavioral aspects of corporate decisions.

Keywords: CEO narcissism; Asymmetric cost behavior; Cost stickiness; Managerial myopia (search for similar items in EconPapers)
JEL-codes: D24 G30 G40 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1062940823001997
Full text for ScienceDirect subscribers only

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:eee:ecofin:v:70:y:2024:i:c:s1062940823001997

DOI: 10.1016/j.najef.2023.102076

Access Statistics for this article

The North American Journal of Economics and Finance is currently edited by Hamid Beladi

More articles in The North American Journal of Economics and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().