Article
Narcissistic leaders and corporate cash Holdings: Evidence in China
The North American Journal of Economics and Finance
(2022)
Abstract
We use a sample of Chinese firms listed on the Stock Exchange of Hong Kong over the period 2007–2018 to examine the relationship between narcissistic leadership and corporate cash holdings. We find that narcissistic leaders seek to attract public attention and promote self-image by overinvestments that reduce cash holdings. We also show that narcissistic leaders have better access to bank loans and lower loan cost, prompting them to hold less cash. The negative effect of narcissistic leaders on cash holdings is more pronounced at private firms than at SOEs. In addition, narcissistic leaders negatively affect the firm value. We contribute to the literature on leader narcissism, cash holdings, and corporate governance in emerging market contexts.
Keywords
- Cash holdings,
- Narcissistic leaders,
- State ownership
Disciplines
Publication Date
January, 2022
DOI
10.1016/j.najef.2021.101567
Citation Information
Penghua Qiao, Yang Long, Hung Gay Fung and Erin H. Kao. "Narcissistic leaders and corporate cash Holdings: Evidence in China" The North American Journal of Economics and Finance Vol. 59 (2022) Available at: http://works.bepress.com/hunggay-fung/168/