Investigation of the relationship between the organizational narcissism of managers with financial crises within the framework of the narcissism approach

Human resources are considered as a competitive advantage in each and every organization in the present era. The decisions, thoughts, and performance of managers can be effective in advancing organizational goals. Nowadays, more than any other time, opinions and perspectives of managers have been considered in the organization-related theories. Therefore, identifying the personality traits of managers, including the narcissism of managers that affects their decisions, is important in different levels of the management and leadership of any organization. Managers of an organization, as much as they can be a competitive advantage for an organization, may become a serious impediment to achieving the goals of the organization and might create financial crises for an organization. This study aims at investigating the relationship between corporate narcissism and financial crises of the listed companies in Tehran Stock Exchange through using a statistical sample including 294 observations (year - firm) between the years 2017 and 2018. After statistical analysis of the data using mixed data regression analysis, the results of research hypotheses show that there is a statistically direct and significant relationship between the organizational narcissism of managers (authority, bragging, superiority, autocracy, exploitation, and narcissism) and financial crises. In other words, the higher the level of narcissism in organizations’ managers might be, the possibility of financial crises resulting from managers ' decisions and practices will be more likely to occur in that organization.