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Narcissus Enters the Courtroom: CEO Narcissism and Fraud

Journal of Business Ethics volume 117, pages 413–429 (2013)Cite this article

Abstract

This study explores the aspects of the relationship between possible indicators of CEO narcissism and fraud. Highly narcissistic CEOs undertake challenging or bold actions to obtain frequent praise and admiration. The pursuit of narcissistic supply may result in a stronger likelihood of a CEO to undertake bold actions with potential detrimental consequences for the organization. The sample consists of all S&P 500 CEOs from 1992 till 2008 with more than 3 years of tenure. The measurement of CEO narcissism is based on 15 objective indicators and fits the main conceptualization of narcissism. This data collection provides a score for all S&P 500 CEOs according to their narcissistic tendencies. The Accounting and Auditing Enforcement Releases on the SEC’s website are the indicators of managerial fraud. The findings confirm the expected influence of plausible proxies for CEO narcissism on fraud by showing a positive relationship. This confirms the psychologic perspective of CEO narcissism as a potential cause of fraud.

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Authors and Affiliations

  1. Erasmus University Rotterdam, Woudestein Room 13-33, P.O. 1738, 3000 DR, Rotterdam, The Netherlands

    Antoinette Rijsenbilt

  2. Erasmus University Rotterdam, Woudestein Room 14-33, P.O. 1738, 3000 DR, Rotterdam, The Netherlands

    Harry Commandeur

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  1. Antoinette Rijsenbilt
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  2. Harry Commandeur
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Correspondence to Antoinette Rijsenbilt.

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Rijsenbilt, A., Commandeur, H. Narcissus Enters the Courtroom: CEO Narcissism and Fraud. J Bus Ethics 117, 413–429 (2013). https://doi.org/10.1007/s10551-012-1528-7

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  • DOI: https://doi.org/10.1007/s10551-012-1528-7

Keywords

  • AAER
  • Chief Executive Officer
  • Fraud
  • Narcissism