Narcissism and firm performance

Karen Kristina Ayala de Carvalho

ORCID: 0000-0003-2477-8354. FGV EAESP.



Behavioral research in the area of finance has advanced in recent decades, contrasting long-established financial theories with normative course models. The field of behavioral finances has gained robustness as it has grown, exemplified by the development of empirical research from tests on behavioral bias in business environments to specific performance analyses. It has since been proven that managers' characteristics can affect the performance of a firm. Researchers have begun undertaking studies on narcissism in the field of management and finances in order to understand the impacts that narcissism can have on companies, as well as different measurement metrics to analyze these factors in business environments. PhD student Karen Kristina Ayala de Carvalho (FGV EAESP), a researcher on the topic, presents five reading suggestions.



TOWARDS A NEW THEORY OF THE FIRM: Humanizing the firm and the management profession
Joan Enric Ricart Costa e Josep Maria Rosanas Martí (Eds.). Bilbao, España: Fundación BBVA, 2012. 440 p.

The book is divided in three parts: leadership and future; new theory of the firm; and micro-foundations. It outlines the increasing narcissism of CEOs by examining bureaucratic changes factors such as selection and compensation as evidence. It then posits foundational concepts towards a new theory of the firm, complementing them in the last part with new elements. It proposes reflections on business management in the context of constant changes and research advances.



Tourish Dennis. London, UK: Routledge, 2013. 264 p.

As the title suggests, the work both characterizes and criticizes the different levels and aspects of narcissism, in both public and professional manifestations. The author promotes a literary course which provocatively proposes an alternative approach to the dominant model of transformational leadership. The book presents case studies as examples of the consequences of dangerous transformational leaderships, including cases in business.



Gregory Boyle, Donald Saklofskee Gerald Matthews. Cambridge, USA: Academic Press, 2015. 824 p.

According to the authors of this book, obscure personality types and characteristics- including narcissism-can be verified and measured through validated measurement scales. This work outlines studies covering 25 areas of psychology research and covers several topics, psychological aspects, examples of applications, and discussions on the constructs involved. In its six parts, the book examines topics such as social psychology and personality, organizational psychology, and sociology.



Avi Besser. New York, USA: Nova Publishers,2014. 475 p.

Going through intrapersonal, interpersonal, and clinical aspects of narcissism in three parts, the book incorporates discussions and analyses of different perspectives on narcissism, such as behavioral, physiological, cognitive, social, and clinical. It provides a general understanding on the subject; by approaching the personal and professional domains of narcissism, this work integrates their relationships with different applications of studies in its 24 chapters. The authors characterize, disrupt, specify, and attribute narcissism throughout each approach.



THE FINANCIAL CONSEQUENCES OF BEHAVIOURAL BIASES: An analysis of bias in corporate finance and financial planning
Imad A. Moosa e Vikash Ramiah. Cham, Switzerland: Palgrave Macmillan, 2017. 174 p.

This book, written specifically for the area of finance, addresses the implications of behavioral biases for the firm. It outlines the particularities of the rise and fall of neoclassical finance theory, the rise of behavioral finance, discussions ranging from conspiracy theories to environmental, social finance, and neurofinance. The book also demonstrates the impact of narcissistic behavior on the financial industry and consequent impactson global financial crises.