Study: The Bigger The CEO's Ego, The More Extreme Performance Swings

Forbes:

The bigger the ego, the wilder the ride.

Companies led by narcissistic CEOs tend to make more frequent strategy changes and larger acquisitions, according to a new study by Penn State University researchers.

"More narcissistic CEOs gravitate to bold and highly visible choices," wrote Penn State management professor Donald Hambrick and graduate lecturer Arijit Chatterjee. "Thus, narcissism may be thought of as an ingredient that stimulates distinctive, extreme managerial actions."

But the moves doesn't always amount to success.

"The greater the narcissism, the more extreme the companies' performance will be. Big wins or big disasters," Hambrick said Wednesday.

While there might be more ups and downs, companies led by more narcissistic CEOs don't do better or worse overall than companies with less narcissistic executives, the study found.

Read the whole story: Forbes