CEO narcissism and accounting: A picture of profits

Journal of Management Accounting Research

Volumn 26, Issue 2, 2013, Pages 243-267

  Olsen, Kari Joseph ^a   Dworkis, Kelsey Kay ^b   Mark Young, S ^a  

^a UNIVERSITY OF SOUTHERN CALIFORNIA   (United States)

^b UNIVERSITY OF MELBOURNE   (Australia)

Author keywords

Earnings management; Earnings per share; Narcissism; Personality; Stock prices

Indexed keywords

EID: 84929518242     PISSN: 10492127     EISSN: 15588033     Source Type: Journal    
DOI: 10.2308/jmar-50638     Document Type: Article

References (56)

1. American Psychiatric Association (APA). 2000. Diagnostic and Statistical Manual of Mental Disorders. 4th edition. Washington, DC: APA.
2. Amernic, J. H., and R. J. Craig. 2010. Accounting as a facilitator of extreme narcissism. Journal of Business Ethics: 79–93.
3. Anderson, J. R., and M. E. Tirrell. 2004. Too good to be true: CEOs and financial reporting fraud. Consulting Psychology Journal: Practice and Research: 35–43.
4. Bergman, J. Z., J. W. Westerman, and J. P. Daly. 2010. Narcissism in management education. The Academy of Management Learning and Education: 119–131.
5. Bergstresser, D., and T. Philippon. 2006. CEO incentives and earnings management. The Journal of Financial Economics: 511–529.
6. Bowen, R. M., S. Rajgopal, and M. Venkatachalam. 2008. Accounting discretion, corporate governance, and firm performance. Contemporary Accounting Research: 351–405.
7. Brown, R., and N. Sarma. 2007. CEO overconfidence, CEO dominance, and corporate acquisitions. Journal of Economics and Business: 358–379.
8. Campbell, W. K., A. B. Brunell, and E. J. Finkel. 2006. Narcissism, interpersonal self-regulation, and romantic relationships: An agency model approach. In Self and Relationships: Connecting Intrapersonal and Inter-Personal Processes, edited by Vohs, K. D., and E. J. Finkel, 57–83. New York, NY: Guilford Press.
9. Campbell, W. K., A. S. Goodie, and J. D. Foster. 2004. Narcissism, confidence, and risk attitude. Journal of Behavioral Decision Making: 297–311.
10. Campbell, W. K., and J. D. Foster. 2007. The narcissistic self: Background, an extended agency model, and ongoing controversies. In Frontiers in Social Psychology: The Self, edited by Sedikides, C., and S. Spencer, 115–138. Philadelphia, PA: Psychology Press.
11. Campbell, W. K., and J. D. Green. 2008. Narcissism and interpersonal regulation. In The Self and Social Relationships, edited by Wood, J. V., A. Tesser, and J. G. Holmes, 73–94. New York, NY: Psychology Press.
12. Campbell, W. K., G. D. Reeder, C. Sedikides, and A. J. Elliot. 2000. Narcissism and comparative selfenhancement strategies. Journal of Research in Personality: 329–347.
13. Campbell, W. K., J. K. Bosson, T. W. Goheen, C. E. Lakey, and M. H. Kernis. 2007. Do narcissists dislike themselves ‘deep down inside’? Psychological Science 18: 227–229.
14. Chatterjee, A., and D. C. Hambrick. 2007. It’s all about me: Narcissistic chief executive officers and their effects on company strategy and performance. Administrative Science Quarterly: 351–386.
15. Chatterjee, A., and D. C. Hambrick. 2011. Executive personality, capability cues, and risk taking: How narcissistic CEOs react to their success and stumbles. Administrative Science Quarterly: 202–237.
16. Cheng, Q., and T. Warfield. 2005. Equity incentives and earnings management. The Accounting Review: 441–476.
17. Cohen, D. A., and P. Zarowin. 2010. Accrual-based and real earnings management activities around seasoned equity offerings. Journal of Accounting & Economics: 2–19.
18. Conger, J. A. 2002. Danger of delusion: The qualities that make leaders great can also cause their downfall. Success and self-confidence often breed narcissism and a sense of infallibility. Financial Times (November 29).
19. Craig, R. J., and J. H. Amernic. 2011. Detecting linguistic traces of destructive narcissism at-a-distance in a CEO’s letter to shareholders. Journal of Business Ethics: 1–13.
20. Dechow, P. M., and D. J. Skinner. 2000. Earnings management: Reconciling the views of accounting academics, practitioners, and regulators. Accounting Horizons: 235–250.
21. Dechow, P. M., R. G. Sloan, and A. P. Sweeney. 1995. Detecting earnings management. The Accounting Review: 193–225.
22. Dechow, P. M., S. P. Kothari, and R. L. Watts. 1998. The relation between earnings and cash flows. Journal of Accounting & Economics: 133–168.
23. Dworkis, K. K. 2013. The Interactive Effects of Incentive Threshold and Narcissism on Managerial Decision-Making. Working paper, University of Southern California.
24. Emmons, R. A. 1987. Narcissism: Theory and measurement. Journal of Personality and Social Psychology: 11–17.
25. Enron. 2000. Annual Report. Houston, TX: Enron.
26. Foster, J. D., and J. C. Brennan. 2011. Narcissism, the agency model, and approach-avoidance motivation. In The Handbook of Narcissism and Narcissistic Personality Disorder, edited by Campbell, K. W.,and J. D. Miller, 89–100. Hoboken, NJ: John Wiley & Sons, Inc.
27. Gabriel, M. T., J. W. Critelli, and J. S. Ee. 1994. Narcissistic illusions in self-evaluations of intelligence and attractiveness. Journal of Personality: 143–155.
28. Galasso, A., and T. S. Simcoe. 2011. CEO overconfidence and innovation. Management Science: 1469–1484.
29. Goel, A. M., and A. V. Thakor. 2008. Overconfidence, CEO selection, and corporate governance. The Journal of Finance: 2737–2784.
30. Griffin, P. A., and N. Zhu. 2010. Accounting rules? Stock buybacks and stock options: Additional evidence. Journal of Contemporary Accounting and Economics: 1–17.
31. Hales, J., J. L. Hobson, and R. J. Resutek. 2012. The Dark Side of Socially Mediated Rewards: How Narcissism and Social Status Affect Managerial Reporting. Available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id¼2021889
32. Healy, P., and J. M. Whalen. 1999. A review of the earnings management literature and its implications for standard setting. Accounting Horizons: 365–384.
33. Hogan, R., and R. Kaiser. 2005. What we know about leadership. Review of General Psychology 9: 169–180.
34. Hribar, P., N. T. Jenkins, and W. B. Johnson. 2006. Stock repurchases as an earnings management device. Journal of Accounting & Economics: 3–27.
35. Ittner, C. D., D. F. Larcker, and M. V. Rajan. 1997. The choice of performance measures in annual bonus contracts. The Accounting Review: 231–255.
36. Johnson, E. N., J. R. Kuhn Jr., B. A. Apostolou, and J. M. Hassell. 2013. Auditor perceptions of client narcissism as fraud attitude risk factor. Auditing: A Journal of Practice & Theory: 203–219.
37. Kets de Vries, M. F. R. 1994. The leadership mystique. Academy of Management Executive: 73–89.
38. Maccoby, M. 2000. Narcissistic leaders: The incredible pros, the inevitable cons. Harvard Business Review (January-February).
39. Malmendier, U., and G. Tate. 2005. CEO overconfidence and corporate investment. The Journal of Finance: 2661–2700.
40. Malmendier, U., and G. Tate. 2008. Who makes acquisitions? CEO overconfidence and the market’s reaction. Journal of Financial Economics: 20–43.
41. O’Reilly C. A., III, B. Doerr, D. F. Caldwell, and J. A. Chatman. 2013. Narcissistic CEOs and executive compensation. The Leadership Quarterly (forthcoming).
42. Ohlson, J. A., and B. E. Juettner-Nauroth. 2005. Expected EPS and EPS growth as determinants of value. Review of Accounting Studies: 349–365.
43. Pinsky, D., and S. M. Young. 2009. The Mirror Effect. New York, NY: HarperCollins.
44. Raskin, R., and C. Hall. 1979. A narcissistic personality inventory. Psychological Reports.
45. Raskin, R., and H. Terry. 1988. A principal-components analysis of the narcissistic personality inventory and further evidence of its construct validity. Journal of Personality and Social Psychology: 890–902.
46. Resick, C. J., D. S. Whitman, S. M. Weingarden, and N. J. Hiller. 2009. The bright side and the dark side of CEO personality: Examining core self-evaluations, narcissism, transformational leadership, and strategic influence. Journal of Applied Psychology: 1365–1381.
47. Roychowdhury, S. 2006. Earnings management through real activities manipulation. Journal of Accounting & Economics: 335–370.
48. Schrand, C. M., and S. L. C. Zechman. 2012. Executive overconfidence and the slippery slope to financial misreporting. Journal of Accounting & Economics: 311–329.
49. Twenge, J. M., and W. K. Campbell. 2009. The Narcissism Epidemic. New York, NY: Free Press.
50. Twenge, J. M., S. Konrath, J. D. Foster, W. K. Campbell, and B. J. Bushman. 2008. Egos inflating over time: A cross-temporal meta-analysis of the narcissistic personality inventory. Journal of Personality: 875–901.
51. Wallace, H. M. 2011. Narcissistic self-enhancement. In Handbook of Narcissism and Narcissistic Personality Disorder: Theoretical Approaches, Empirical Findings, and Treatment, edited by Campbell, W. K., and J. Miller, 309–318. Hoboken, NJ: John Wiley & Sons, Inc.
52. Wallace, H. M., and R. F. Baumeister. 2002. The performance of narcissists rises and falls with perceived opportunity for glory. Journal of Personality and Social Psychology: 819–834.
53. Webb, E., and K. E. Weick. 1979. Unobtrusive measures in organizational theory: A reminder. Administrative Science Quarterly: 650–659.
54. Westerman, J. W., J. Z. Bergman, S. M. Bergman, and J. P. Daly. 2011. Are Universities Creating Millennial Narcissistic Employees? An Empirical Examination of Narcissism in Business Students and Its Implications. Available at: http://jme.sagepub.com/content/early/2011/05/12/1052562911408097
55. Zang, A. 2006. Evidence on the Tradeoff between Real Manipulation and Accrual Manipulation. Available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id¼961293
56. Zeigler-Hill, V., and C. H. Jordan. 2011. Behind the mask: Narcissism and implicit self-esteem. In Handbook of Narcissism and Narcissistic Personality Disorder: Theoretical Approaches, Empirical Findings, and Treatment, edited by Campbell, W. K., and J. D. Miller, 101–115. Hoboken, NJ: John Wiley & Sons, Inc.