Investigating the Effect of CEO Narcissism on Shareholder Swarm Intelligence: Hubris Phenomenon Test
Investigating the Effect of CEO Narcissism on Shareholder Swarm Intelligence: Hubris Phenomenon Test
Subject Areas : Financial Knowledge of Securities Analysis
Abolfazl Sherkhani
1
(
Department of Accounting, Shahrood Branch, Islamic Azad University, Shahrood, Iran.
)
Mehdi Safari Gerayli
2
(
Associate Professor Department of Accounting, Bandargaz Branch, Islamic Azad University, Bandargaz, Iran. (Corresponding Author)
)
Hasan Valiyan
3
(
Assistant Professor of Accounting, Department of Accounting, Shahrood Branch, Islamic Azad University, Shahrood, Iran
)
Keywords: CEO Narcissism, Shareholder Swarm Intelligence, Hubris Phenomenon,
Abstract :
Managers' personality traits (such as the brain and hormones) indicate that their behavior depends on the origin and personality traits and type of attitude. Therefore, the CEO personality traits can be the basis for behaviors in stakeholders such as shareholders. The purpose of this research is investigating the effect of CEO's narcissism on shareholder Swarm Intelligence by Hubris phenomenon test. The research data collection tool was a questionnaire, so that the modified NPI-16 Ames et al (2006) questionnaire was used to measure the CEO's narcissism. But, in order to measure the shareholder swarm intelligence, due to the fact that there was no standard questionnaire, through Meta synthesis and Delphi analysis, a researcher-made questionnaire was used to measure this variable. Partial least squares analysis (PLS) was used to test the research hypothesis. The result of testing the research hypothesis is that the effect of CEO's narcissism on shareholder Swarm Intelligence is negative and significant. In the analysis of the result obtained, it should be stated that according to the Hubris phenomenon, the tendency of the CEO to have too much confidence in individual abilities and abuse of power for selfish purposes leads to narcissism, and this leads to mistrust in shareholders. Crowd intelligence should be based on emotion and emotion in their decision making.
