The differential effects of CEO narcissism and hubris on corporate social responsibility

• Main Authors: TANG, Yi, MACK, Daniel Z., CHEN, Guoli
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2018
• Subjects: board-interlocked peer firms; CEO narcissism; CEO hubris; corporate social responsibility (CSR); S&P 1500; index firms; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5602; https://ink.library.smu.edu.sg/context/lkcsb_research/article/6601/viewcontent/CEO_narcissism_hubris_sv.pdf
• Institution: Singapore Management University

While prior studies have predominantly shown that CEO narcissism and hubris exhibit similar effects on various strategic decisions and outcomes, this study aims to explore the mechanisms underlying how narcissistic vs. hubristic CEOs affect their firms differently. Specifically, we investigate how peer influence moderates the CEO narcissism/hubris – CSR relationships. With a sample of S&P 1500 firms for 2003–2010, we find that the positive relationship between CEO narcissism and CSR is strengthened (weakened) when board-interlocked peer firms invest less (more) intensively in CSR than a CEO’s own firm; the negative relationship between CEO hubris and CSR is strengthened when peer firms are engaged in less CSR than a CEO’s own firm.