Sự Tham Gia Có Chủ Ý Của CEO Tự Đắc Vào Quản Lý Lợi Nhuận

Journal of Business Ethics - Tập 167 - Trang 663-686 - 2019
Frerich Buchholz1, Kerstin Lopatta2,3, Karen Maas4,5
1zeb.rolfes.schierenbeck.associates GmbH, Münster, Germany
2Faculty of Business, Economics and Social Sciences, University of Hamburg, Hamburg, Germany
3Department of Accountancy, City University of Hong Kong, Kowloon Tong, Hong Kong
4Open University, Heerlen, The Netherlands
5Impact Centre Erasmus, Erasmus University Rotterdam, Rotterdam, The Netherlands

Tóm tắt

Xác nhận lý thuyết về tầng lớp lãnh đạo cao, nghiên cứu này đề cập đến quan điểm rằng các giám đốc điều hành (CEO) tự đắc lợi dụng lựa chọn kế toán để nâng cao thành tích của công ty và do đó là thành tích cá nhân của chính họ. Sử dụng một bộ 15 chỉ số, phản ánh đặc điểm tự đắc của 1126 CEO trong giai đoạn 1992 đến 2012, chúng tôi tìm thấy bằng chứng về việc các CEO tự đắc cao cấp tham gia vào quản lý lợi nhuận dựa trên cơ sở tích lũy (ABEM). Khác với các nghiên cứu trước đây, kết quả cho thấy bằng chứng không chỉ cho việc tăng thu nhập mà còn cả việc giảm thu nhập trong ABEM. Điều này cho thấy rằng các CEO tự đắc cao cấp không chỉ cố gắng ảnh hưởng đến nhận thức của các bên liên quan về hiệu suất hiện tại. Chúng tôi kết luận rằng họ cũng đánh giá khả năng của mình để ảnh hưởng đến nhận thức về lợi nhuận hiện tại và tương lai. Kết quả cho thấy rằng các lựa chọn kế toán của các CEO tự đắc cao cấp được điều khiển bởi hành vi vị kỷ hơn là ý định cung cấp thêm thông tin cho thị trường. Khi các kỹ thuật quản lý lợi nhuận được sử dụng để thu lợi cá nhân từ việc trình bày lợi nhuận của một công ty, tài liệu tham khảo gọi đây là một trường hợp chất lượng lợi nhuận thấp phản ánh hành vi phi đạo đức. Do đó, nghiên cứu này đóng góp vào lĩnh vực đạo đức kinh doanh bằng cách chỉ ra rằng tính tự đắc của CEO có liên quan đến chất lượng lợi nhuận thấp ở chỗ nó liên quan đến việc giảm thiểu quyền quyết định.

Từ khóa

#CEO tự đắc #quản lý lợi nhuận #chất lượng lợi nhuận #hành vi đạo đức #kế toán

Tài liệu tham khảo

Abernethy, M. A., Bouwens, J., & van Lent, L. (2010). Leadership and control system design. Management Accounting Research, 21(1), 2–16. https://doi.org/10.1016/j.mar.2009.10.002. Adams, R. B., & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance. Journal of Financial Economics, 94(2), 291–309. https://doi.org/10.1016/j.jfineco.2008.10.007. Aktas, N., de Bodt, E., Bollaert, H., & Roll, R. (2016). CEO narcissism and the takeover process: From private initiation to deal completion. Journal of Financial and Quantitative Analysis, 51(01), 113–137. https://doi.org/10.1017/S0022109016000065. Ali, A., & Zhang, W. (2015). CEO tenure and earnings management. Journal of Accounting and Economics, 59(1), 60–79. https://doi.org/10.1016/j.jacceco.2014.11.004. Altman, E. I. (1968). Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. The Journal of Finance, 23(4), 589–609. https://doi.org/10.1111/j.1540-6261.1968.tb00843.x. American Psychiatric Association. (2013). Diagnostic and statistical manual of mental disorders (5th ed.). Washington, DC: American Psychiatric Association. Amernic, J. H., & Craig, R. J. (2010). Accounting as a facilitator of extreme narcissism. Journal of Business Ethics, 96(1), 79–93. https://doi.org/10.1007/s10551-010-0450-0. Anderson, J. R., & Tirrell, M. E. (2004). Too good to be true. CEOs and financial reporting fraud. Consulting Psychology Journal: Practice and Research, 56(1), 35–43. https://doi.org/10.1037/1061-4087.56.1.35. Armstrong, C. S., Guay, W. R., & Weber, J. P. (2010). The role of information and financial reporting in corporate governance and debt contracting. Journal of Accounting and Economics, 50(2–3), 179–234. https://doi.org/10.1016/j.jacceco.2010.10.001. Baber, W. R., Kang, S.-H., & Li, Y. (2011). Modeling discretionary accrual reversal and the balance sheet as an earnings management constraint. The Accounting Review, 86(4), 1189–1212. https://doi.org/10.2308/accr-10037. Bamber, L. S., Jiang, J., & Wang, I. Y. (2010). What’s my style? The influence of top managers on voluntary corporate financial disclosure. The Accounting Review, 85(4), 1131–1162. https://doi.org/10.2308/accr.2010.85.4.1131. Bao, B.-H., & Bao, D.-H. (2004). Income smoothing, earnings quality and firm valuation. Journal of Business Finance Accounting, 31(9–10), 1525–1557. https://doi.org/10.1111/j.0306-686X.2004.00583.x. Barker, V. L., & Mueller, G. C. (2002). CEO characteristics and firm R&D spending. Management Science, 48(6), 782–801. https://doi.org/10.1287/mnsc.48.6.782.187. Barnes, C. M., Dang, C. T., Leavitt, K., Guarana, C. L., & Uhlmann, E. L. (2015). Archival data in micro-organizational research: A toolkit for moving to a broader set of topics. Journal of Management, 44(4), 1453–1478. https://doi.org/10.1177/0149206315604188. Bass, B. M., & Steidlmeier, P. (1999). Ethics, character, and authentic transformational leadership behavior. The Leadership Quarterly, 10(2), 181–217. https://doi.org/10.1016/S1048-9843(99)00016-8. Baumeister, R. F., & Vohs, K. D. (2001). Narcissism as addiction to esteem. Psychological Inquiry, 12(4), 206–210. Bebchuk, L., Cohen, A., & Ferrell, A. (2009). What matters in corporate governance? Review of Financial Studies, 22(2), 783–827. https://doi.org/10.1093/rfs/hhn099. Becker, C. L., DeFond, M. L., Jiambalvo, J., & Subramanyam, K. R. (1998). The effect of audit quality on earnings management. Contemporary Accounting Research, 15(1), 1–24. https://doi.org/10.1111/j.1911-3846.1998.tb00547.x. Bergstresser, D., & Philippon, T. (2006). CEO incentives and earnings management. Journal of Financial Economics, 80(3), 511–529. https://doi.org/10.1016/j.jfineco.2004.10.011. Bradlee, P. M., & Emmons, R. A. (1992). Locating narcissism within the interpersonal circumplex and the five-factor model. Personality and Individual Differences, 13(7), 821–830. https://doi.org/10.1016/0191-8869(92)90056-U. Brennan, N. M., & Conroy, J. P. (2013). Executive hubris: The case of a bank CEO. Accounting, Auditing & Accountability Journal, 26(2), 172–195. https://doi.org/10.1108/09513571311303701. Bromiley, P., & Rau, D. (2016). Social, behavioral, and cognitive influences on upper echelons during strategy process. Journal of Management, 42(1), 174–202. https://doi.org/10.1177/0149206315617240. Brown, R. P., & Zeigler-Hill, V. (2004). Narcissism and the non-equivalence of self-esteem measures: A matter of dominance? Journal of Research in Personality, 38(6), 585–592. https://doi.org/10.1016/j.jrp.2003.11.002. Brunell, A. B., Gentry, W. A., Campbell, W. K., Hoffman, B. J., Kuhnert, K. W., & Demarree, K. G. (2008). Leader emergence: The case of the narcissistic leader. Personality and Social Psychology Bulletin, 34(12), 1663–1676. https://doi.org/10.1177/0146167208324101. Bruns, W. J., & Merchant, K. A. (1990). The dangerous morality of managing earnings. Management Accounting, 71, 22–25. Burns, N., & Kedia, S. (2006). The impact of performance-based compensation on misreporting. Journal of Financial Economics, 79(1), 35–67. https://doi.org/10.1016/j.jfineco.2004.12.003. Buyl, T., Boone, C., & Wade, J. B. (2017). CEO narcissism, risk-taking, and resilience. Journal of Management, 11, 014920631769952. https://doi.org/10.1177/0149206317699521. Campbell, W. K., Bonacci, A. M., Shelton, J., Exline, J. J., & Bushman, B. J. (2004a). Psychological entitlement: Interpersonal consequences and validation of a self-report measure. Journal of Personality Assessment, 83(1), 29–45. https://doi.org/10.1207/s15327752jpa8301_04. Campbell, W. K., Goodie, A. S., & Foster, J. D. (2004b). Narcissism, confidence, and risk attitude. Journal of Behavioral Decision Making, 17(4), 297–311. https://doi.org/10.1002/bdm.475. Campbell, W. K., & Miller, J. D. (2011). The handbook of narcissism and narcissistic personality disorder: Theoretical approaches, empirical findings, and treatments. Hoboken, N.J.: John Wiley & Sons. Campbell, W. K., Reeder, G. D., Sedikides, C., & Elliot, A. J. (2000). Narcissism and comparative self-enhancement strategies. Journal of Research in Personality, 34(3), 329–347. https://doi.org/10.1006/jrpe.2000.2282. Capalbo, F., Frino, A., Lim, M. Y., Mollica, V., & Palumbo, R. (2017). The impact of CEO narcissism on earnings management. Abacus, 51, 1. https://doi.org/10.1111/abac.12116. Carpenter, M. A., Geletkanycz, M. A., & Sanders, W. G. (2004). Upper echelons research revisited: Antecedents, elements, and consequences of top management team composition. Journal of Management, 30(6), 749–778. https://doi.org/10.1016/j.jm.2004.06.001. Chan, K., Jegadeesh, N., & Sougiannis, T. (2004). The accrual effect on future earnings. Review of Quantitative Finance and Accounting, 22(2), 97–121. https://doi.org/10.1023/B:REQU.0000015852.00973.8f. Chatterjee, A., & Hambrick, D. C. (2007). It’s all about me: Narcissistic chief executive officers and their effects on company strategy and performance. Administrative Science Quarterly, 52(3), 351–386. https://doi.org/10.2189/asqu.52.3.351. Chen, S. (2010). The role of ethical leadership versus institutional constraints: A simulation study of financial misreporting by CEOs. Journal of Business Ethics, 93(S1), 33–52. https://doi.org/10.1007/s10551-010-0625-8. Cheng, Q., & Warfield, T. D. (2005). Equity incentives and earnings management. The Accounting Review, 80(2), 441–476. https://doi.org/10.2308/accr.2005.80.2.441. Cohen, D. A., Dey, A., & Lys, T. Z. (2008). Real and accrual-based earnings management in the pre- and post-Sarbanes-Oxley periods. The Accounting Review, 83(3), 757–787. https://doi.org/10.2308/accr.2008.83.3.757. Cohen, D. A., & Zarowin, P. (2010). Accrual-based and real earnings management activities around seasoned equity offerings. Journal of Accounting and Economics, 50(1), 2–19. https://doi.org/10.1016/j.jacceco.2010.01.002. Collier, J., & Roberts, J. (2001). An ethic for corporate governance? Business Ethics Quarterly, 11(1), 67–71. Conger, J. A. (1990). The dark side of leadership. Organizational Dynamics, 19(2), 44–55. Cornett, M., Marcus, A., & Tehranian, H. (2008). Corporate governance and pay-for-performance: The impact of earnings management. Journal of Financial Economics, 87(2), 357–373. https://doi.org/10.1016/j.jfineco.2007.03.003. Craig, R., & Amernic, J. (2011). Detecting linguistic traces of destructive narcissism at-a-distance in a CEO’s letter to shareholders. Journal of Business Ethics, 101(4), 563–575. https://doi.org/10.1007/s10551-011-0738-8. Davis, S., DeZoort, F. T., & Kopp, L. S. (2006). The effect of obedience pressure and perceived responsibility on management accountants’ creation of budgetary slack. Behavioral Research in Accounting, 18(1), 19–35. https://doi.org/10.2308/bria.2006.18.1.19. de Harlez, Y., & Malagueño, R. (2016). Examining the joint effects of strategic priorities, use of management control systems, and personal background on hospital performance. Management Accounting Research, 30, 2–17. https://doi.org/10.1016/j.mar.2015.07.001. Dechow, P. M., & Dichev, I. D. (2002). The quality of accruals and earnings: The role of accrual estimation errors. The Accounting Review, 77, 35–59. https://doi.org/10.2307/3203324. Dechow, P. M., Hutton, A. P., Kim, J. H., & Sloan, R. G. (2012). Detecting earnings management: A new approach. Journal of Accounting Research, 50(2), 275–334. https://doi.org/10.1111/j.1475-679X.2012.00449.x. DeFond, M. L., & Jiambalvo, J. (1994). Debt covenant violation and manipulation of accruals. Journal of Accounting and Economics, 17(1–2), 145–176. https://doi.org/10.1016/0165-4101(94)90008-6. DeFond, M. L., & Park, C. W. (2001). The reversal of abnormal accruals and the market valuation of earnings surprises. The Accounting Review, 76(3), 375–404. https://doi.org/10.2308/accr.2001.76.3.375. DeFond, M. L., & Subramanyam, K. R. (1998). Auditor changes and discretionary accruals. Journal of Accounting and Economics, 25(1), 35–67. https://doi.org/10.1016/S0165-4101(98)00018-4. DeWall, N. C., Buffardi, L. E., Bonser, I., & Campbell, K. W. (2011). Narcissism and implicit attention seeking: Evidence from linguistic analyses of social networking and online presentation. Personality and Individual Differences, 51(1), 57–62. https://doi.org/10.1016/j.paid.2011.03.011. Domino, M. A., Wingreen, S. C., & Blanton, J. E. (2015). Social cognitive theory: The antecedents and effects of ethical climate fit on organizational attitudes of corporate accounting professionals—a reflection of client narcissism and fraud attitude risk. Journal of Business Ethics, 131(2), 453–467. https://doi.org/10.1007/s10551-014-2210-z. Duchon, D., & Drake, B. (2009). Organizational narcissism and virtuous behavior. Journal of Business Ethics, 85(3), 301–308. https://doi.org/10.1007/s10551-008-9771-7. Emmons, R. A. (1984). Factor analysis and construct validity of the Narcissistic Personality Inventory. Journal of Personality Assessment, 48(3), 291–300. https://doi.org/10.1207/s15327752jpa4803_11. Emmons, R. A. (1987). Narcissism: Theory and measurement. Journal of Personality and Social Psychology, 52(1), 11–17. https://doi.org/10.1037//0022-3514.52.1.11. Engelen, A., Neumann, C., & Schmidt, S. (2016). Should entrepreneurially oriented firms have narcissistic CEOs? Journal of Management, 42(3), 698–721. https://doi.org/10.1177/0149206313495413. Erickson, M., & Wang, S.-W. (1999). Earnings management by acquiring firms in stock for stock mergers. Journal of Accounting and Economics, 27(2), 149–176. https://doi.org/10.1016/S0165-4101(99)00008-7. Feng, M., Ge, W., Luo, S., & Shevlin, T. (2011). Why do CFOs become involved in material accounting manipulations? Journal of Accounting and Economics, 51(1–2), 21–36. https://doi.org/10.1016/j.jacceco.2010.09.005. Fischer, M., & Rosenzweig, K. (1995). Attitudes of students and accounting practitioners concerning the ethical acceptability of earnings management. Journal of Business Ethics, 14(6), 433–444. https://doi.org/10.1007/BF00872085. Foster, J. D., Misra, T. A., & Reidy, D. E. (2009a). Narcissists are approach-oriented toward their money and their friends. Journal of Research in Personality, 43(5), 764–769. https://doi.org/10.1016/j.jrp.2009.05.005. Foster, J. D., Shenesey, J. W., & Goff, J. S. (2009b). Why do narcissists take more risks? Testing the roles of perceived risks and benefits of risky behaviors. Personality and Individual Differences, 47(8), 885–889. https://doi.org/10.1016/j.paid.2009.07.008. Foster, J. D., & Trimm, R. F. (2008). On being eager and uninhibited: Narcissism and approach-avoidance motivation. Personality and Social Psychology Bulletin, 34(7), 1004–1017. https://doi.org/10.1177/0146167208316688. Francis, J., Huang, A. H., Rajgopal, S., & Zang, A. Y. (2008). CEO reputation and earnings quality. Contemporary Accounting Research, 25(1), 109–147. https://doi.org/10.1506/car.25.1.4. Francis, J. R., Maydew, E. L., & Sparks, H. C. (1999). The role of big 6 auditors in the credible reporting of accruals. AUDITING: A Journal of Practice & Theory, 18(2), 17–34. https://doi.org/10.2308/aud.1999.18.2.17. Gabriel, M. T., Critelli, J. W., & Ee, J. S. (1994). Narcissistic illusions in self-evaluations of intelligence and attractiveness. Journal of Personality, 62(1), 143–155. https://doi.org/10.1111/j.1467-6494.1994.tb00798.x. Gaio, C., & Raposo, C. (2011). Earnings quality and firm valuation: International evidence. Accounting & Finance, 51(2), 467–499. https://doi.org/10.1111/j.1467-629X.2010.00362.x. García-Meca, E., & Sánchez-Ballesta, J. P. (2009). Corporate governance and earnings management: A meta-analysis. Corporate Governance: An International Review, 17(5), 594–610. https://doi.org/10.1111/j.1467-8683.2009.00753.x. Ge, W., Matsumoto, D., & Zhang, J. L. (2011). Do CFOs have style? An empirical investigation of the effect of individual CFOs on accounting practices. Contemporary Accounting Research, 28(4), 1141–1179. https://doi.org/10.1111/j.1911-3846.2011.01097.x. Gerstner, W.-C., Konig, A., Enders, A., & Hambrick, D. C. (2013). CEO narcissism, audience engagement, and organizational adoption of technological discontinuities. Administrative Science Quarterly, 58(2), 257–291. https://doi.org/10.1177/0001839213488773. Giampetro-Meyer, A., Brown, T., Browne, M. N., & Kubasek, N. (1998). Do we really want more leaders in business? Journal of Business Ethics, 17(15), 1727–1736. https://doi.org/10.1023/A:1006092107644. Godfrey, J., Mather, P., & Ramsay, A. (2003). Earnings and impression management in financial reports: The case of CEO changes. Abacus, 39(1), 95–123. https://doi.org/10.1111/1467-6281.00122. Graham, J. R., Harvey, C. R., & Puri, M. (2013). Managerial attitudes and corporate actions. Journal of Financial Economics, 109(1), 103–121. https://doi.org/10.1016/j.jfineco.2013.01.010. Grant, P., & McGhee, P. (2013). Organisational Narcissism: A Case of Failed Corporate Governance? In H. Harris, G. Wijesinghe, & S. McKenzie (Eds.), The heart of the good institution: Virtue ethics as a framework for responsible management (Vol. 38). Dordrecht: Springer. Grasso, L. P., Tilley, P. A., & White, R. A. (2009). The ethics of earnings management: Perceptions after Sarbanes-Oxley. Management Accounting Quarterly, 11(1), 45–69. Haggard, K. S., Howe, J. S., & Lynch, A. A. (2015). Do baths muddy the waters or clear the air? Journal of Accounting and Economics, 59(1), 105–117. https://doi.org/10.1016/j.jacceco.2014.09.007. Ham, C., Lang, M., Seybert, N., & Wang, S. (2017). CFO narcissism and financial reporting quality. Journal of Accounting Research, 51, 1. https://doi.org/10.1111/1475-679X.12176. Hambrick, D. C. (2007). Upper echelons theory: An update. Academy of Management Review, 32(2), 334–343. https://doi.org/10.5465/AMR.2007.24345254. Hambrick, D. C., & Fukutomi, G. D. S. (1991). The seasons of a CEO’s tenure. Academy of Management Review, 16(4), 719. https://doi.org/10.2307/258978. Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9(2), 193–206. https://doi.org/10.5465/AMR.1984.4277628. Harris, J., & Bromiley, P. (2007). Incentives to Cheat: The influence of executive compensation and firm performance on financial misrepresentation. Organization Science, 18(3), 350–367. https://doi.org/10.1287/orsc.1060.0241. Harrison, A., Summers, J., & Mennecke, B. (2016). The effects of the dark triad on unethical behavior. Journal of Business Ethics, 50(2), 179. https://doi.org/10.1007/s10551-016-3368-3. Hayward, M. L. A., & Hambrick, D. C. (1997). Explaining the premiums paid for large acquisitions: Evidence of CEO hubris. Administrative Science Quarterly, 42(1), 103–127. https://doi.org/10.2307/2393810. Hazarika, S., Karpoff, J. M., & Nahata, R. (2012). Internal corporate governance, CEO turnover, and earnings management. Journal of Financial Economics, 104(1), 44–69. https://doi.org/10.1016/j.jfineco.2011.10.011. Healy, P. M., & Wahlen, J. M. (1999). A review of the earnings management literature and its implications for standard setting. Accounting Horizons, 13(4), 365–383. https://doi.org/10.2308/acch.1999.13.4.365. Hickman, S. E., Watson, P. J., & Morris, R. J. (1996). Optimism, pessimism, and the complexity of narcissism. Personality and Individual Differences, 20(4), 521–525. https://doi.org/10.1016/0191-8869(95)00223-5. Hiebl, M. R. W. (2014). Upper echelons theory in management accounting and control research. Journal of Management Control, 24(3), 223–240. https://doi.org/10.1007/s00187-013-0183-1. Ho, S. S. M., Li, A. Y., Tam, K., & Zhang, F. (2015). CEO gender, ethical leadership, and accounting conservatism. Journal of Business Ethics, 127(2), 351–370. https://doi.org/10.1007/s10551-013-2044-0. Hogan, R., & Hogan, J. (2001). Assessing leadership: A view from the dark side. International Journal of Selection and Assessment, 9(1&2), 40–51. https://doi.org/10.1111/1468-2389.00162. Hogan, R., & Kaiser, R. B. (2005). What we know about leadership. Review of General Psychology, 9(2), 169–180. https://doi.org/10.1037/1089-2680.9.2.169. Holthausen, R. W., Larcker, D. F., & Sloan, R. G. (1995). Annual bonus schemes and the manipulation of earnings. Journal of Accounting and Economics, 19(1), 29–74. https://doi.org/10.1016/0165-4101(94)00376-G. Hong, Y., & Andersen, M. L. (2011). The relationship between corporate social responsibility and earnings management: An exploratory study. Journal of Business Ethics, 104(4), 461–471. https://doi.org/10.1007/s10551-011-0921-y. Horvath, S., & Morf, C. C. (2010). To be grandiose or not to be worthless: Different routes to self-enhancement for narcissism and self-esteem. Journal of Research in Personality, 44(5), 585–592. https://doi.org/10.1016/j.jrp.2010.07.002. Hribar, P., & Collins, D. W. (2002). Errors in estimating accruals: Implications for empirical research. Journal of Accounting Research, 40(1), 105–134. https://doi.org/10.1111/1475-679X.00041. Ingersoll, A. R., Glass, C., Cook, A., & Olsen, K. J. (2017). Power, status and expectations: How narcissism manifests among women CEOs. Journal of Business Ethics, 20(3), 441. https://doi.org/10.1007/s10551-017-3730-0. Jones, J. J. (1991). Earnings management during import relief investigations. Journal of Accounting Research, 29(2), 193–228. Kaplan, S. E. (2001). Ethically related judgments by observers of earnings management. Journal of Business Ethics, 32(4), 285–298. https://doi.org/10.1023/A:1010600802029. Kets de Vries, M. F. R., & Miller, D. (1985). Narcissism and leadership: An object relations perspective. Human Relations, 38(6), 583–601. https://doi.org/10.1177/001872678503800606. Kim, Y., Park, M. S., & Wier, B. (2012). Is earnings quality associated with corporate social responsibility? The Accounting Review, 87(3), 761–796. https://doi.org/10.2308/accr-10209. Kothari, S. P., Leone, A. J., & Wasley, C. E. (2005). Performance matched discretionary accrual measures. Journal of Accounting and Economics, 39(1), 163–197. https://doi.org/10.1016/j.jacceco.2004.11.002. Lakey, C. E., Rose, P., Campbell, W. K., & Goodie, A. S. (2008). Probing the link between narcissism and gambling: The mediating role of judgment and decision-making biases. Journal of Behavioral Decision Making, 21(2), 113–137. https://doi.org/10.1002/bdm.582. Lee, G., & Masulis, R. W. (2011). Do more reputable financial institutions reduce earnings management by IPO issuers? Journal of Corporate Finance, 17(4), 982–1000. https://doi.org/10.1016/j.jcorpfin.2011.04.012. Leuz, C., Nanda, D., & Wysocki, P. D. (2003). Earnings management and investor protection: An international comparison. Journal of Financial Economics, 69(3), 505–527. https://doi.org/10.1016/S0304-405X(03)00121-1. Libby, R., Rennekamp, K. M., & Seybert, N. (2015). Regulation and the interdependent roles of managers, auditors, and directors in earnings management and accounting choice. Accounting, Organizations and Society, 47, 25–42. https://doi.org/10.1016/j.aos.2015.09.003. Lubit, R. (2002). The long-term organizational impact of destructively narcissistic managers. The Academy of Management Executive, 16(1), 127–138. https://doi.org/10.2307/4165819. Maccoby, M. (2004). Narcissistic leaders: The incredible pros, the inevitable cons. Harvard Business Review, 82(1), 92–101. Marquez-Illescas, G., Zebedee, A. A., & Zhou, L. (2018). Hear me write: Does CEO Narcissism affect disclosure? Journal of Business Ethics, 58(2), 219. https://doi.org/10.1007/s10551-018-3796-3. Martínez-Ferrero, J., & García-Sánchez, I.-M. (2015). Is corporate social responsibility an entrenchment strategy? Evidence in stakeholder protection environments. Review of Managerial Science, 9(1), 89–114. https://doi.org/10.1007/s11846-014-0120-1. McManus, J. (2016). Hubris and unethical decision making: The tragedy of the uncommon. Journal of Business Ethics, 48(2), 371. https://doi.org/10.1007/s10551-016-3087-9. McNichols, M. F. (2002). Discussion of the quality of accruals and earnings: The role of accrual estimation errors. The Accounting Review, 77, 61–69. https://doi.org/10.2308/accr.2002.77.s-1.61. Merchant, K. A., & Rockness, J. (1994). The ethics of managing earnings: An empirical investigation. Journal of Accounting and Public Policy, 13(1), 79–94. https://doi.org/10.1016/0278-4254(94)90013-2. Miller, D. (1991). Stale in the saddle: CEO tenure and the match between organization and environment. Management Science, 37(1), 34–52. https://doi.org/10.1287/mnsc.37.1.34. Moore, M. L. (1973). Management changes and discretionary accounting decisions. Journal of Accounting Research, 11(1), 100–107. https://doi.org/10.2307/2490283. Morelli, M., & Lecci, F. (2014). Management control systems (MCS) change and the impact of top management characteristics: The case of healthcare organisations. Journal of Management Control, 24(3), 267–298. https://doi.org/10.1007/s00187-013-0182-2. Morf, C. C., & Rhodewalt, F. (1993). Narcissism and self-evaluation maintenance: Explorations in object relations. Personality and Social Psychology Bulletin, 19(6), 668–676. https://doi.org/10.1177/0146167293196001. Morf, C. C., & Rhodewalt, F. (2001). Unraveling the paradoxes of narcissism: A dynamic self-regulatory processing model. Psychological Inquiry, 12(4), 177–196. https://doi.org/10.1207/S15327965PLI1204_1. Murphy, K. J., & Zimmerman, J. L. (1993). Financial performance surrounding CEO turnover. Journal of Accounting and Economics, 16(1–3), 273–315. https://doi.org/10.1016/0165-4101(93)90014-7. Naranjo-Gil, D., Maas, V. S., & Hartmann, F. G. H. (2009). How CFOs determine management accounting innovation: An examination of direct and indirect effects. European Accounting Review, 18(4), 667–695. https://doi.org/10.1080/09638180802627795. National Commission on Fraudulent Financial Reporting (1987). Report of the National Commission on Fraudulent Financial Reporting. New York. Oesterle, M.-J., Elosge, C., & Elosge, L. (2016). Me, myself and I: The role of CEO narcissism in internationalization decisions. International Business Review, 25(5), 1114–1123. https://doi.org/10.1016/j.ibusrev.2016.02.001. Olsen, K. J., Dworkis, K. K., & Young, S. M. (2014). CEO narcissism and accounting: A picture of profits. Journal of Management Accounting Research, 26(2), 243–267. https://doi.org/10.2308/jmar-50638. O’Reilly, C. A., Doerr, B., Caldwell, D. F., & Chatman, J. A. (2014). Narcissistic CEOs and executive compensation. The Leadership Quarterly, 25(2), 218–231. https://doi.org/10.1016/j.leaqua.2013.08.002. Patel, P. C., & Cooper, D. (2014). The harder they fall, the faster they rise: Approach and avoidance focus in narcissistic CEOs. Strategic Management Journal, 35(10), 1528–1540. https://doi.org/10.1002/smj.2162. Patelli, L., & Pedrini, M. (2015). Is tone at the top associated with financial reporting aggressiveness? Journal of Business Ethics, 126(1), 3–19. https://doi.org/10.1007/s10551-013-1994-6. Paulhus, D. L. (1998). Interpersonal and intrapsychic adaptiveness of trait self-enhancement: A mixed blessing? Journal of Personality and Social Psychology, 74(5), 1197–1208. https://doi.org/10.1037/0022-3514.74.5.1197. Paulhus, D. L., & Williams, K. M. (2002). The dark triad of personality: Narcissism, Machiavellianism, and psychopathy. Journal of Research in Personality, 36(6), 556–563. https://doi.org/10.1016/S0092-6566(02)00505-6. Petrenko, O. V., Aime, F., Ridge, J., & Hill, A. (2016). Corporate social responsibility or CEO narcissism? CSR motivations and organizational performance. Strategic Management Journal, 37(2), 262–279. https://doi.org/10.1002/smj.2348. Plöckinger, M., Aschauer, E., Hiebl, M. R. W., & Rohatschek, R. (2016). The influence of individual executives on corporate financial reporting: A review and outlook from the perspective of upper echelons theory. Journal of Accounting Literature, 37, 55–75. https://doi.org/10.1016/j.acclit.2016.09.002. Pourciau, S. (1993). Earnings management and nonroutine executive changes. Journal of Accounting and Economics, 16(1–3), 317–336. https://doi.org/10.1016/0165-4101(93)90015-8. Rangan, S. (1998). Earnings management and the performance of seasoned equity offerings. Journal of Financial Economics, 50(1), 101–122. https://doi.org/10.1016/S0304-405X(98)00033-6. Raskin, R. N., & Hall, C. S. (1979). A narcissistic personality inventory. Psychological Reports, 45(2), 590. https://doi.org/10.2466/pr0.1979.45.2.590. Raskin, R., & Hall, C. S. (1981). The Narcissistic Personality Inventory: Alternative form reliability and further evidence of construct validity. Journal of Personality Assessment, 45(2), 159–162. https://doi.org/10.1207/s15327752jpa4502_10. Raskin, R., Novacek, J., & Hogan, R. (1991). Narcissism, self-esteem, and defensive self-enhancement. Journal of Personality, 59(1), 19–38. https://doi.org/10.1111/j.1467-6494.1991.tb00766.x. Raskin, R. N., & Terry, H. (1988). A principal-components analysis of the narcissistic personality inventory and further evidence of its construct validity. Journal of Personality and Social Psychology, 54(5), 890–902. https://doi.org/10.1037/0022-3514.54.5.890. Rijsenbilt, A. (2011). CEO narcissism: Measurement and impact, Dissertation, Erasmus Research Institute of Management (ERIM). Retrieved from http://hdl.handle.net/1765/23554. Rijsenbilt, A., & Commandeur, H. (2013). Narcissus enters the courtroom: CEO narcissism and fraud. Journal of Business Ethics, 117(2), 413–429. https://doi.org/10.1007/s10551-012-1528-7. Roberts, J. (2001). Corporate governance and the ethics of narcissus. Business Ethics Quarterly, 11(1), 109–127. https://doi.org/10.2307/3857872. Robins, R. W., & Beer, J. S. (2001). Positive illusions about the self: Short-term benefits and long-term costs. Journal of Personality and Social Psychology, 80(2), 340–352. https://doi.org/10.1037/0022-3514.80.2.340. Rosenthal, S. A., & Pittinsky, T. L. (2006). Narcissistic leadership. Leadership Quarterly, 17(6), 617–633. https://doi.org/10.1016/j.leaqua.2006.10.005. Roychowdhury, S. (2006). Earnings management through real activities manipulation. Journal of Accounting and Economics, 42(3), 335–370. https://doi.org/10.1016/j.jacceco.2006.01.002. Schipper, K., & Vincent, L. (2003). Earnings quality. Accounting Horizons, 17, 97–110. https://doi.org/10.2308/acch.2003.17.s-1.97. Schrand, C. M., & Zechman, S. L. C. (2012). Executive overconfidence and the slippery slope to financial misreporting. Journal of Accounting and Economics, 53(1–2), 311–329. https://doi.org/10.1016/j.jacceco.2011.09.001. Serfling, M. A. (2014). CEO age and the riskiness of corporate policies. Journal of Corporate Finance, 25, 251–273. https://doi.org/10.1016/j.jcorpfin.2013.12.013. Shleifer, A., & Vishny, R. W. (1986). Large shareholders and corporate control. Journal of Political Economy, 94(3), 461. https://doi.org/10.1086/261385. Sputtek, R. (2012). Narcissism, core self evaluation and sensitivity to criticism on the executive level - how do executive’s personalities and anger influence their decision making and leadership behavior? In R. Sputtek (Ed.), Opening the Black Box (pp. 14–35). Wiesbaden: Gabler Verlag. Stinson, F. S., Dawson, D. A., Goldstein, R. B., Chou, S. P., Huang, B., Smith, S. M., et al. (2008). Prevalence, correlates, disability, and comorbidity of DSM-IV narcissistic personality disorder: Results from the Wave 2 National Epidemiologic Survey on Alcohol and Related Conditions. Journal of Clinical Psychiatry, 69(7), 1033–1045. Su, S., Baird, K., & Schoch, H. (2015). The moderating effect of organisational life cycle stages on the association between the interactive and diagnostic approaches to using controls with organisational performance. Management Accounting Research, 26, 40–53. https://doi.org/10.1016/j.mar.2014.09.001. Teoh, S. H., Welch, I., & Wong, T. J. (1998). Earnings management and the underperformance of seasoned equity offerings. Journal of Financial Economics, 50(1), 63–99. https://doi.org/10.1016/S0304-405X(98)00032-4. Thompson, L., & Loewenstein, G. (1992). Egocentric interpretations of fairness and interpersonal conflict. Organizational Behavior and Human Decision Processes, 51(2), 176–197. https://doi.org/10.1016/0749-5978(92)90010-5. van Scotter, J. R., & Roglio, K. D. D. (2018). CEO bright and dark personality: Effects on ethical misconduct. Journal of Business Ethics, 40(4), 440. https://doi.org/10.1007/s10551-018-4061-5. Vazire, S., & Funder, D. C. (2006). Impulsivity and the self-defeating behavior of narcissists. Personality and social psychology review, 10(2), 154–165. https://doi.org/10.1207/s15327957pspr1002_4. Vazire, S., Naumann, L. P., Rentfrow, P. J., & Gosling, S. D. (2008). Portrait of a narcissist: Manifestations of narcissism in physical appearance. Journal of Research in Personality, 42(6), 1439–1447. https://doi.org/10.1016/j.jrp.2008.06.007. Wallace, H. M. (2011). Narcissistic self-enhancement. In W. K. Campbell & J. D. Miller (Eds.), The handbook of narcissism and narcissistic personality disorder: Theoretical approaches, empirical findings, and treatments (pp. 309–318). Hoboken, N.J.: John Wiley & Sons. Wallace, H. M., & Baumeister, R. F. (2002). The performance of narcissists rises and falls with perceived opportunity for glory. Journal of Personality and Social Psychology, 82(5), 819–834. https://doi.org/10.1037//0022-3514.82.5.819. Wang, G., Holmes, R. M., Oh, I.-S., & Zhu, W. (2016). Do CEOs matter to firm strategic actions and firm performance? A meta-analytic investigation based on upper echelons theory. Personnel Psychology, 69(4), 775–862. https://doi.org/10.1111/peps.12140. Wells, P. (2002). Earnings management surrounding CEO changes. Accounting & Finance, 42(2), 169–193. https://doi.org/10.1111/1467-629X.00073. Wilson, M., & Wang, L. W. (2010). Earnings management following chief executive officer changes: The effect of contemporaneous chairperson and chief financial officer appointments. Accounting & Finance, 50(2), 447–480. https://doi.org/10.1111/j.1467-629X.2009.00324.x. Zang, A. Y. (2012). Evidence on the trade-off between real activities manipulation and accrual-based earnings management. The Accounting Review, 87(2), 675–703. https://doi.org/10.2308/accr-10196. Zeigler-Hill, V., & Jordan, C. H. (2011). Behind the mask: Narcissism and implicit self-esteem. In W. K. Campbell & J. D. Miller (Eds.), The handbook of narcissism and narcissistic personality disorder: Theoretical approaches, empirical findings, and treatments (pp. 101–115). Hoboken, N.J.: John Wiley & Sons. Zhu, D. H., & Chen, G. (2015a). CEO narcissism and the impact of prior board experience on corporate strategy. Administrative Science Quarterly, 60(1), 31–65. https://doi.org/10.1177/0001839214554989. Zhu, D. H., & Chen, G. (2015b). Narcissism, director selection, and risk-taking spending. Strategic Management Journal, 36(13), 2075–2098. https://doi.org/10.1002/smj.2322.