Narcissistic leaders do not share! The relationship between top managers' narcissism and the distribution of value added

Carlos Alves and Maria João Guedes

Finance Research Letters, 2022, vol. 49, issue C

Abstract: Stakeholder theory implies that firms' economic and social purpose is to create value for all their stakeholders, without favoring any group. However, the distribution of the value created is a matter of choice for each firm. Thus, it may reflect the top managers' characteristics. Accordingly, this paper examines whether the narcissism of top managers impacts the creation and distribution of value added. The results show that narcissism does not impact the total value added. However, narcissistic top managers capture more value for themselves, paying less to employees. Other stakeholder groups are not affected by the narcissism of top managers.

Keywords: Narcissism; Value added; Top managers; Stakeholder theory (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:49:y:2022:i:c:s1544612322002872

DOI: 10.1016/j.frl.2022.103054

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