In this paper, we test the hypothesis that CEO narcissism influences firms’ hedging behaviour. Our empirical evidence, based on hand-collected data on derivative positions in the U.S. oil and gas industry, suggests that firms with a narcissistic CEO hedge more selectively. Furthermore, we find that these firms reduce selective hedging comparatively more following a sharp price collapse that sent the industry into a state of distress. This result is in line with the ‘narcissistic paradox’: While scoring high on self-esteem and grandiosity in the normal case, such individuals are also inherently fragile and liable to crumble when faced with adversity.

中文翻译：

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我、我自己和我：CEO 自恋和选择性对冲

在本文中，我们检验了 CEO 自恋影响公司对冲行为的假设。我们基于手工收集的美国石油和天然气行业衍生品头寸数据的经验证据表明，拥有自恋 CEO 的公司更有选择性地进行对冲。此外，我们发现，在价格急剧下跌导致行业陷入困境之后，这些公司相对减少了选择性对冲。这一结果符合“自恋悖论”：在正常情况下，虽然在自尊和自大方面得分很高，但这些人本质上也很脆弱，面对逆境时容易崩溃。