Chairman Narcissism and Social Responsibility Choices: The Moderating Role of Analyst Coverage

Chairman narcissism has received extensive attention in social psychology and organizational behavior, but the relationship between chairman narcissism and social responsibility has not yet received much attention. The purpose of this study is to investigate the effect of chairman narcissism on various dimensions of CSR and the moderating roles of analyst coverages. Based on upper echelons theory and stakeholder theory, we distinguished internal corporate social responsibility (internal CSR) and external corporate social responsibility (external CSR) according to whether there was a formal contractual relationship. This study used a narcissism index of chairmen of Chinese listed companies to examine the relationship between chairman narcissism and internal CSR, external CSR, and the data were analyzed using Stata16.0. The results showed that there was a positive correlation between chairman narcissism and external CSR, and there was a negative correlation between chairman narcissism and internal CSR. That is, the higher the Chairman’s narcissism degree is, the more external CSR and less internal CSR the firm makes. Further research showed that analyst coverage has weakened the impact of chairman narcissism on internal and external CSR. This paper enriches and expands the research on chairman narcissism and CSR and provides new ideas for selecting corporate managers and improving corporate governance.