Abstract Narcissism is the dark-side ingredient of CEO personality. Narcissistic CEOs are prevalent in Chinese society. However, literatures on the relationship between CEO narcissism and firm strategic decisions remain relatively limited. Consensus has not still reached on whether CEO narcissism affects firm innovation. Drawing on the theory of upper echelons and the multilevel view, this study investigates the relationship between CEO narcissism and R&D investment as well as the moderating roles of ownership and market competition. Using a sample of 163 A-share manufacturing firms listed in Shanghai and Shenzhen stock exchange from 2011~2016, this study obtains three points through multilevel regression model with maximum likelihood estimation. First, CEO narcissism is positively associated to R&D investment. Second, CEO narcissism has a stronger impact on R&D investment in state-owned firms than in non-state-owned firms. Third, compared to low-competition industries, CEO narcissism has a stronger impact on R&D investment in high-competition industries. Further analysis reveals that state-owned firms led by narcissistic CEOs invest most in terms of R&D in high-competition industries.
JI Yang,ZHOU Erhua,LONG Lirong. The Relationship between CEO Narcissism and R&D Investment: The Moderating Roles of Ownership and Market Competition[J]. Chinese Journal of Management, 2019, 16(8): 1142-.
