This study investigates the relationship between narcissistic personality characteristics in CEOs of Fortune 500 companies and financial performance measures of earnings-per-share and stock valuation. Using panel data from 1992 through 2009, we show that firms with narcissistic CEOs have higher...

We examine the extent to which firms use past performance as a basis for setting earnings targets in their bonus plans and assess the implications of such targets for managerial incentives. We find that high-profitability firms commonly reduce earnings targets when their managers fail to meet...