Do Investors React to Narcissistic CEOs?

Paul Lehmann wrote his bachelor’s thesis at our Chair. It has now been published in the latest issue of Junior Management Science (JUMS). The journal publishes outstanding theses in Business Administration and related fields. We extend our heartfelt congratulations!

Paul Lehmann examines how the capital market reacts when a company appoints a narcissistic CEO. Narcissism is difficult to measure directly. He therefore relies on the size of a person’s signature, which research uses as an indicator of narcissism. He examines 341 NASDAQ-listed companies between 2004 and 2024. Using an event study, he measures how stock prices evolve in the days surrounding the appointment of a new CEO.

The result: Investors do not react measurably to how narcissistic a new CEO is. In contrast, they react significantly negatively when the new CEO also assumes the chairmanship of the board and thus concentrates a great deal of power in his or her hands. Investors therefore pay more attention to the governance structure than to the personality at the top.

This study builds on our research into the personality traits of executives and corporate governance. Dr. Philipp Richter served as the thesis advisor.

Lehmann, P. (2026). CEO Narcissism and Stock Market Reactions: An Empirical Analysis. Junior Management Science, 11(3), 513–531. https://doi.org/10.5282/jums/v11i3pp513-531