Is Having A Narcissistic Chairman A Bad Sign?

In modern companies,the characteristics of senior managers play an increasingly important role in enterprise management,and even determine the success or failure of enterprise strategy and performance.The chairman plays a crucial role in the business decision,strategy and future development of the enterprise.However,due to the difficulties in measuring chairman’s psychology and personality,there are few studies on the influence of chairman’s personality characteristics on corporate behavior decision-making in domestic and foreign literatures.Therefore,this paper takes the personality trait of chairman narcissism as the entry point and tries to study its influence on corporate behavior decision-making and performance.In this paper,2462 chairmen of 2768 A-share listed companies in China from 2009 to 2016 were selected as the research samples,and the size of the square formed by the signature of the chairman on the annual report,audit report and other public statements of the listed company was used as the proxy variable of the chairman’s degree of narcissism for empirical analysis.The results show that the narcissistic traits of the chairman have a positive impact on the company’s r&d and m&a activities.At the same time,the higher the degree of narcissism of the chairman,the greater the volatility of the company’s performance and the higher likelihood of financial fraud.As a result,the narcissistic nature of the chairman can have negative economic consequences for listed companies.Besides,this paper show that the state-owned enterprises have significantly inhibited the chairman’s personality to a large extent.The innovation of this paper innovatively adopted signature size as chairman of their levels of narcissism measure,in-depth study and analysis of the under the background of different property rights,chairman of the personality characteristics of narcissistic personality behavior decision-making of the enterprise and the influence of the performance.