Managers’ narcissistic tendencies may fundamentally affect whether a company makes risky or safe moves as a response to the firm’s above-aspiration performance, according to a new study published in Strategic Management Journal. In a study that helps to clarify prior conflicting research, the researchers find evidence that high-narcissism CEOs respond to above-aspiration performance with more acquisitions, while low-narcissism CEOs avoid acquisitions.
New study finds high-narcissism CEOs pursue more acquisitions in response to strong firm performance
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