Abstract
Purpose This study aims to analyze the relationship between the nonpathological traits of narcissism and decisions under conditions of uncertainty and risk in light of the prospect (PT) and fuzzy-trace theories (FTT). Design/methodology/approach This paper conducted an empirical-theoretical study with 210 Brazilian academics from the business area (accountants and managers), using a self-reported questionnaire to collect data. This paper analyzed the data through descriptive statistical techniques, correlation, test of hypotheses and logistic regression. Findings The results point to a lower disposition of respondents to narcissistic traits, although the characteristics of self-sufficiency, authority, exploitation and superiority have been demonstrated. Most participants chose the sure gain in positive scenarios and risk in light of possibility of losses. However, those with high levels of narcissism showed higher propensity to make risky decisions, both in positive and negative scenarios. Research limitations/implications The empirical results about risky decision-making behavior of individuals with narcissist traits spur further investigation on the impacts of attitudes and behaviors in organizations as they are affected by psychosocial factors. These attitudes and behaviors, reflected in administrative and financial reports, influence future decisions of investors. Originality/value The interaction between the areas of business administration and psychology in regard to the effects of the narcissist personality trait and the FTT is both original and valuable for the business area. The simplest scenario based on the FTT theory can help eliminate issues around the interpretation and complexities of calculations regarding decision-making scenarios in PT format.
Highlights
In the business arena, executives make financial decisions to organize, control, leverage and improve business performance
As for the studies that discuss the narcissistic personality trait related to decisionmaking, the results show that individuals with high traits of narcissism demonstrate impulsiveness and overconfidence in their knowledge and performance by agreeing with risky bets that could result in victory and success, even though they know that the consequences can be harmful to the company
When checking in detail the assertions of the applied narcissistic personality inventory (NPI) instrument, we observed that the respondents showed stronger agreement with the following statements: “I am a born leader” (77.6%); “When I feel competent, I take the decision” (64.8%); “I see myself as a good leader” (61.4%); “I have a natural talent for influencing people” (61%); “I will be a success” (55.2%); and “I can decipher people as if they were a book” (55.2%)
Summary
Executives make financial decisions to organize, control, leverage and improve business performance. These decisions are reflected in the accounting reports and in the continuity of the company. For Amernic and Craig (2010) and Olsen, Dworkis, and Young (2014), the achievement of high corporate profits is the business card of these managers. They influence the work team to adopt an opportunistic attitude and make unethical decisions to inflate business profit so that the company’s success becomes a steppingstone for their greater professional growth. When narcissistic executives see photos and stories of successful executives, the narcissists are motivated to commit acts and make choices without measuring the consequences, so that they, too, can be admired by others
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