CEO Narcissism and CSR Decoupling: Evidence from Pakistan

Abstract

This study aims to identify the relationship between CEO narcissism on CSR decoupling with the moderating role of institutional ownership. For data, the collection probability sampling technique has been used. Data from 183 non-financial firms registered at the Pakistan Stock exchange has been collected for the duration of 2013-2019. Correlation and panel data regression analysis has been used for data analysis. The findings of the current study suggest that there is a positive link between CEO narcissism and CSR decoupling. Moreover, institutional ownership negatively moderates the relationship between CEO narcissism and CSR decoupling. In the present research, CEO duality and CEO tenure have been used as proxies to evaluate CEO Narcissism for the first time. Moreover, Institutional ownership has also not been studied as a moderator between CEO Narcissism and CSR Decoupling before. The outcomes of this study are important for stakeholders as CEO narcissism can affect the CSR practices of the firm, and the market performance of the firm can also be affected. It is also important for top management to work on personality traits that are undesirable for themselves, company performance, and other stakeholders in general.