Purpose – This study investigates the impact of boardroom psychological traits – narcissism, overconfidence and myopia – on stock price crash risk, focusing on the moderating role of corporate governance. It aims to provide insights into how behavioural dynamics within boards influence financial stability, particularly in emerging markets where governance structures often face unique challenges such as weaker regulatory oversight and higher information asymmetry. Understanding these dynamics is critical for mitigating systemic risks and fostering sustainable market growth. Design/methodology/approach – Using data from 112 firms listed on the Tehran Stock Exchange over 10 years (2013–2022), the study employs multiple linear regression to analyse the relationship between board psychology and crash risk, measured through the negative skewness of stock returns. Corporate governance is assessed via board independence, ownership concentration and other mechanisms. Findings – The results reveal that narcissism, overconfidence and myopia in board members significantly increase stock price crash risk. However, robust corporate governance mechanisms, such as board independence and ownership concentration, effectively mitigate these adverse effects. This highlights the pivotal role of governance in stabilising financial markets, especially in emerging economies where behavioural biases may be more pronounced due to less mature institutional frameworks. Originality/value – This research bridges behavioural finance and corporate governance by examining the collective psychological traits of boards, a previously underexplored area. It offers a novel perspective on the role of governance in mitigating behavioural risks, contributing to both academic literature and practical governance frameworks. The study’s focus on emerging markets provides timely insights for regulators and investors seeking to address the intersection of psychology and financial stability in these high-growth but volatile environments

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