When things go wrong: Examining the impact of managerial narcissism, optimism and emotional stability on choosing insolvency proceedings - Archive ouverte HAL
Communication Dans Un Congrès Année : 2024

When things go wrong: Examining the impact of managerial narcissism, optimism and emotional stability on choosing insolvency proceedings

Résumé

Drawing on trait-interaction theory and the literature on restructuring decisions in times of financial distress, we examined the effect of managerial narcissism, optimism and emotional stability on managers strategic decisions in times of adversity. In particular, we focus on managers choice between in-court and out-of-court (private) restructuring procedures. Using survey-based data from an original sample of 230 French SMEs facing financial distress, we show that managers’ narcissism and optimism are negatively associated with their choice of in-court restructuring. However, we show that CEO emotional stability is positively related to the choice of in-court restructuring. Further, we investigate the moderating effect of emotional stability on the relationship between managerial narcissism and optimism and the choice of restructuring strategy. Our findings support the idea that emotional stability can have a self-regulating role and reduce the effect of subjective preferences and beliefs of optimistic managers but not the one of narcissistic managers.
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Dates et versions

hal-04721110 , version 1 (04-10-2024)

Identifiants

  • HAL Id : hal-04721110 , version 1

Citer

Rachid Achbah, Marc Fréchet, Ivana Vitanova. When things go wrong: Examining the impact of managerial narcissism, optimism and emotional stability on choosing insolvency proceedings. French Finance Association Conference (AFFI), May 2024, Lille, France. ⟨hal-04721110⟩
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