Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022)

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The Effect of Leaders with Narcissism and Overconfidence Characteristics on Corporate Risk-Taking

Authors
Yosephine Endang Purba1, *, Farah Margaretha Leon1, Kristian Chandra1, Febria Narulita1, Caecilia Rina1
1Management Study Program, Faculty of Economic and Business, Universitas Trisakti, Jakarta, Indonesia
*Corresponding author. Email: yosephina@trisakti.ac.id
Corresponding Author
Yosephine Endang Purba
Available Online 10 January 2024.
DOI
10.2991/978-94-6463-350-4_71How to use a DOI?
Keywords
Board Narcissism; CEO Narcissism; Corporate Risk-Taking; Leverage; Management Overconfidence
Abstract

The characteristics of a leader in a company significantly impact the organization's sustainability. This study aims to investigate the influence of the narcissistic character of the CEO and Board, as well as managerial overconfidence in corporate risk-taking. The data in this study were collected from 22 manufacturing companies listed on the Indonesia Stock Exchange from 2014–2020. The data in this study is secondary data, tested using the regression data panel method using E-Views 12 software. These research findings indicate a significant negative relationship between Board Narcissism and Corporate Risk Taking and a critical negative relationship between Management Overconfidence and Corporate Risk Taking. Leverage as a variable control has a significant positive relationship with Corporate Risk Taking. Research provides implications for investors and the industry to understand better the role of narcissism and the overconfidence of CEOs, boards, and company management in making rational decisions about company risk-taking. This research is expected to be a positive reference for all company stakeholders and contribute to developing literature on leader narcissism, overconfidence, and corporate risk-taking.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
10 January 2024
ISBN
10.2991/978-94-6463-350-4_71
ISSN
2352-5428
DOI
10.2991/978-94-6463-350-4_71How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yosephine Endang Purba
AU  - Farah Margaretha Leon
AU  - Kristian Chandra
AU  - Febria Narulita
AU  - Caecilia Rina
PY  - 2024
DA  - 2024/01/10
TI  - The Effect of Leaders with Narcissism and Overconfidence Characteristics on Corporate Risk-Taking
BT  - Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022)
PB  - Atlantis Press
SP  - 720
EP  - 730
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-350-4_71
DO  - 10.2991/978-94-6463-350-4_71
ID  - Purba2024
ER  -