Table 13

CEO narcissism, corporate ESG performance and corporate value

(1)(2)(3)(4)(5)
ROAROEGrowthNPMEVAH
CEO_nar−0.0007−0.0006−0.0531**−0.0016−0.0007
(−1.00)(−0.38)(−2.29)(−0.81)(−0.81)
ESG_r−0.0067***−0.0116***0.1304***−0.0131***−0.0077***
(−10.30)(−8.46)(2.85)(−8.30)(−10.48)
CEO_nar*ESG_r−0.0025***−0.0059***−0.0142***−0.0049***−0.0027***
(−3.65)(−3.79)(−2.82)(−2.82)(−3.47)
controlsYesYesYesYesYes
Ind FEYesYesYesYesYes
Year FEYesYesYesYesYes
Cluster by FirmYesYesYesYesYes
Observations10,9878,9208,91810,98610,986
Adj. R20.240.090.070.270.17

Note(s): Table 13 reports a test of the economic consequences that follow the effect of CEO narcissism on corporate ESG performance. ROA equals the firm’s after-tax net income divided by the average balance of total assets. ROE equals the firm’s after-tax net income divided by the average net assets. Growth equals the growth rate of end-of-period operating revenues compared to the previous period. NPM equals the ratio of the firm’s last-period after-tax net income to its sales revenues. EVAH is equal to EVA as a percentage of total assets. Other variables are defined in Table 1. All regressions are firm-level clustered robust standard errors. *, ** and *** denote significance at the 10%, 5% and 1% levels, respectively

Source(s): Authors’ own work

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