Turner, K., Adiguzel, F. and Sidhu, J. orcid.org/0000-0001-9773-7559 (2023) EXPRESS: CEO narcissism, corporate inertia, and securities analysts’ stock recommendations. Strategic Organization. ISSN 1476-1270
Abstract
The narcissism of chief executive officers (CEOs) is attracting much research interest because of its potential effects on the strategic decisions, financial performance, and competitive standing of firms. This article addresses a significant gap in the literature by analyzing the effect of CEO narcissism on security analysts’ stock recommendations (ASR). As financial-market intermediaries between firms and investors, analysts are an important corporate-governance actor, whose stock recommendations are consequential for the market value of a firm. Drawing on the idea of observers’ implicit leadership theories, we argue that greater CEO narcissism will predict lower ASR because narcissistic CEOs’ penchant for risk taking will lead analysts to categorize them as ineffective leaders. We argue further that signals of corporate inertia conveyed by the age, size, and reputation of firms will positively moderate the CEO narcissism – ASR relationship, because analysts will expect inertia to be offset by narcissistic CEOs’ risk taking, a dynamic likely to improve firm performance. U.S. panel data provides support for the theorized CEO narcissism – ASR relationship and indicates significant moderation effects of the reputation and size of firms. The article discusses the study’s contributions and implications for research and practice.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © The Author(s) 2023. This is an author produced version of an article published in Strategic Organization. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Chief executive officers; TOPICS AND PERSPECTIVES; Strategic leadership; Panel data methods; RESEARCH METHODS; Capital markets; Reputation |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Management Division (LUBS) (Leeds) > Management Division Strategy and Organisation (LUBS) |
Depositing User: | Symplectic Publications |
Date Deposited: | 04 Dec 2023 15:21 |
Last Modified: | 05 Dec 2023 01:44 |
Status: | Published online |
Publisher: | SAGE |
Identification Number: | 10.1177/14761270231218096 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:206135 |