Accounting Research Journal, Volume (34), No (5), Year (2021-11) , Pages (429-446)

Title : ( The relationship between CEOs’ narcissism and internal controls weaknesses )

Authors: Mahdi Salehi , Raha Rajaeei , Samane Edalati Shakib ,

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Abstract

Purpose – This study aims to investigate the relationship between chief executive officer (CEO) narcissism and internal control weaknesses in the Iranian listed companies. Design/methodology/approach – The study’s statistical population consists of 1,309 firm-year observations from 2012 to 2018. Multivariate regression and the least squares regression are used in this study to examine the hypothesis. Findings – The hypothesis confirms a positive and significant relationship between the CEOs’ narcissism and the internal control weaknesses (ICWs). In other words, managers with narcissistic personality traits prioritize their position, interests and goals. Therefore, there is more possibility of information distortion and denying the existing internal controls, leading to an increase in misreporting. Originality/value – In this paper, two variables, including the manager’s signature and the managers’ cash compensation index, are used to assess the CEO’s narcissism, leading to more accurate results. This is also the first study examining CEO narcissism and internal control weaknesses, especially in the emerging market.

Keywords

, CEO narcissism, Company valuation, The personality trait, Weakness in internal controls
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@article{paperid:1089939,
author = {Salehi, Mahdi and Raha Rajaeei and Samane Edalati Shakib},
title = {The relationship between CEOs’ narcissism and internal controls weaknesses},
journal = {Accounting Research Journal},
year = {2021},
volume = {34},
number = {5},
month = {November},
issn = {1030-9616},
pages = {429--446},
numpages = {17},
keywords = {CEO narcissism; Company valuation; The personality trait; Weakness in internal controls},
}

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%0 Journal Article
%T The relationship between CEOs’ narcissism and internal controls weaknesses
%A Salehi, Mahdi
%A Raha Rajaeei
%A Samane Edalati Shakib
%J Accounting Research Journal
%@ 1030-9616
%D 2021

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