<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Bankruptcy or default is a situation, in which, a business company or enterprise gets unable to pay its debts and cannot meet its obligations. Different reasons can cause bankruptcy that mismanagement seems to be one of the most important reasons for bankruptcy. This study aimed to examine the effect of managers’ narcissism on bankruptcy risk among companies operating on the Tehran Stock Exchange. This is a quasi-experimental research of post-event type, which falls into the field of positive accounting research based on real information. The final sample of this study was chosen using the systematic elimination (screening) and non-randomized sampling method, including 177 companies in a period of 8 years from 2013 to 2020. The research data were extracted annually from the Codal website, which were entered in the EVIEWS10 software following calculations in EXCEL software to examine the research relationships and hypotheses. The results of testing the research hypothesis revealed that the managers’ narcissism has a significant impact on the bankruptcy risk. The results obtained were consistent with the results of previous empirical studies indicating that improving the ability and characteristics of managers can enhance the performance of the company.</p>
</abstract>

Bankruptcy or default is a situation, in which, a business company or enterprise gets unable to pay its debts and cannot meet its obligations. Different reasons can cause bankruptcy that mismanagement seems to be one of the most important reasons for bankruptcy. This study aimed to examine the effect of managers’ narcissism on bankruptcy risk among companies operating on the Tehran Stock Exchange. This is a quasi-experimental research of post-event type, which falls into the field of positive accounting research based on real information. The final sample of this study was chosen using the systematic elimination (screening) and non-randomized sampling method, including 177 companies in a period of 8 years from 2013 to 2020. The research data were extracted annually from the Codal website, which were entered in the EVIEWS10 software following calculations in EXCEL software to examine the research relationships and hypotheses. The results of testing the research hypothesis revealed that the managers’ narcissism has a significant impact on the bankruptcy risk. The results obtained were consistent with the results of previous empirical studies indicating that improving the ability and characteristics of managers can enhance the performance of the company.

Evaluating the Effect of Managers’ Narcissism on Bankruptcy Risk Among Companies Listed on the Tehran Stock Exchange

Islamic Azad University, Science and Research Branch

Studia Universitatis „Vasile Goldis” Arad – Economics Series

This work is licensed under the Creative Commons Attribution 4.0 International License.

Bankruptcy or default is a situation, in which, a business company or enterprise gets unable to pay its debts and cannot meet its obligations. Different...

Evaluating the Effect of Managers’ Narcissism on Bankruptcy Risk Among Companies Listed on the Tehran Stock Exchange

Published Online: Apr 13, 2022

Page range: 65 - 83

Received: Sep 01, 2021

Accepted: Dec 01, 2021

DOI: https://doi.org/10.2478/sues-2022-0009

Keywords
Managers’ narcissism, Bankruptcy risk, Tehran Stock Exchange

© 2022 Shahriar Faghekarimi et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Evaluating the Effect of Managers’ Narcissism on Bankruptcy Risk Among Companies Listed on the Tehran Stock Exchange

Published Online: Apr 13, 2022

Page range: 65 - 83

Received: Sep 01, 2021

Accepted: Dec 01, 2021

DOI: https://doi.org/10.2478/sues-2022-0009

KeywordsManagers’ narcissism, Bankruptcy risk, Tehran Stock Exchange

© 2022 Shahriar Faghekarimi et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Managers’ narcissism, Bankruptcy risk, Tehran Stock Exchange