The impact of chief executive officer narcissism on environmental, social, and governance reporting
Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet
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in: Business Strategy and the Environment, Jahrgang 32, Nr. 7, 11.2023, S. 4448-4466.
Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet
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TY - JOUR
T1 - The impact of chief executive officer narcissism on environmental, social, and governance reporting
AU - Kind, Finja Lena
AU - Zeppenfeld, Jennifer
AU - Lueg, Rainer
N1 - Funding Information: Open Access funding enabled and organized by Projekt DEAL. Publisher Copyright: © 2023 The Authors. Business Strategy and The Environment published by ERP Environment and John Wiley & Sons Ltd.
PY - 2023/11
Y1 - 2023/11
N2 - We analyze the effect of chief executive officer (CEO) narcissism on environmental, social, and governance (ESG) reporting. The study relies partly on hand-collected, visual data and covers 57 German DAX 40 and MDAX companies from 2016 to 2020 (266 company-year observations, Bloomberg database). Looking into the sub-scores of ESG, CEO narcissism has a negative and linear relationship with environment and governance reporting but there is no significant relationship between narcissism and social reporting. Regression analyses further suggest a U-shaped (quadratic) relation between CEO narcissism and ESG reporting: while low to moderate degrees of narcissism affect overall ESG reporting negatively, as CEO levels of narcissism increase so does the level of reporting. Moreover, further analysis has shown that the quantity of reporting is additionally positively related to ESG performance. The study applies and validates a relatively new but easily applicable measure of narcissism and extends narcissism research in the area of curvilinear relationships. We offer several further implications for human resource managers, regulators, auditors, and (non-)financial analysts.
AB - We analyze the effect of chief executive officer (CEO) narcissism on environmental, social, and governance (ESG) reporting. The study relies partly on hand-collected, visual data and covers 57 German DAX 40 and MDAX companies from 2016 to 2020 (266 company-year observations, Bloomberg database). Looking into the sub-scores of ESG, CEO narcissism has a negative and linear relationship with environment and governance reporting but there is no significant relationship between narcissism and social reporting. Regression analyses further suggest a U-shaped (quadratic) relation between CEO narcissism and ESG reporting: while low to moderate degrees of narcissism affect overall ESG reporting negatively, as CEO levels of narcissism increase so does the level of reporting. Moreover, further analysis has shown that the quantity of reporting is additionally positively related to ESG performance. The study applies and validates a relatively new but easily applicable measure of narcissism and extends narcissism research in the area of curvilinear relationships. We offer several further implications for human resource managers, regulators, auditors, and (non-)financial analysts.
KW - corporate social responsibility
KW - environmental policy
KW - stakeholder engagement
KW - strategic decisions
KW - sustainable development
KW - upper echelons theory
KW - Management studies
UR - http://www.scopus.com/inward/record.url?scp=85146983368&partnerID=8YFLogxK
UR - https://www.mendeley.com/catalogue/ab575d90-2228-3481-8036-46e674909d35/
U2 - 10.1002/bse.3375
DO - 10.1002/bse.3375
M3 - Journal articles
AN - SCOPUS:85146983368
VL - 32
SP - 4448
EP - 4466
JO - Business Strategy and the Environment
JF - Business Strategy and the Environment
SN - 0964-4733
IS - 7
ER -