Narcissism is a Bad Sign: CEO Signature Size and Firm Performance

Using the size of CEO signatures in SEC filings to measure individual narcissism, we find that it is associated with several negative firm outcomes. We first validate signature size as a measure of narcissism in a laboratory experiment. We then use CEO signatures to study the relation between CEO narcissism, the firm’s investment policies, and firm performance. CEO narcissism is associated with overinvestment, particularly in the form of R&D and...