Research suggests credit rating agencies perceive companies led by narcissistic chief executives as riskier propositions.
A good deal is written about the personality traits of chief executives. Often they stand accused of possessing qualities that may be good for the business but are less pleasant for their colleagues. New research suggests some of these negative characteristics are spotted by the outside world—and may have damaging financial consequences. A team at Bath University compared CEOs with narcissist personality features and found their company’s credit ratings correlated with their characters. “Our results indicate that credit ratings are negatively associated with CEO narcissism,” the team conclude. “These results are in line with the view credit rating agencies perceive the companies led by narcissistic CEOs as riskier and, ac