Purpose

This study aims to investigate the relationship between chief executive officer (CEO) narcissism and internal control weaknesses in the Iranian listed companies.

Design/methodology/approach

The study’s statistical population consists of 1,309 firm-year observations from 2012 to 2018. Multivariate regression and the least squares regression are used in this study to examine the hypothesis.

Findings

The hypothesis confirms a positive and significant relationship between the CEOs’ narcissism and the internal control weaknesses (ICWs). In other words, managers with narcissistic personality traits prioritize their position, interests and goals. Therefore, there is more possibility of information distortion and denying the existing internal controls, leading to an increase in misreporting.

Originality/value

In this paper, two variables, including the manager’s signature and the managers’ cash compensation index, are used to assess the CEO’s narcissism, leading to more accurate results. This is also the first study examining CEO narcissism and internal control weaknesses, especially in the emerging market.

中文翻译：

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CEO自恋与内部控制弱点的关系

目的

本研究旨在探讨伊朗上市公司首席执行官（CEO）自恋与内部控制弱点之间的关系。

设计/方法/方法

该研究的统计总体包括 2012 年至 2018 年的 1,309 个公司年度观察结果。本研究使用多元回归和最小二乘回归来检验假设。

发现

该假设证实了 CEO 自恋与内部控制弱点 (ICW) 之间存在显着的正相关关系。换句话说，具有自恋人格特质的管理者优先考虑他们的职位、兴趣和目标。因此，信息失真和否认现有内部控制的可能性更大，导致误报增加。

原创性/价值

本文采用经理签名和经理现金薪酬指数这两个变量来评估CEO的自恋，从而得到更准确的结果。这也是第一项研究 CEO 自恋和内部控制弱点的研究，尤其是在新兴市场。