The relationship between managers' narcissism and company value added and managers' compensation

Document Type : Original Article

Authors

1 Master of Accounting Student, Imam Reza International University, Mashhad, Iran

2 Associate Professor, Imam Reza International University, Mashhad, Iran

10.22080/shrm.2026.29173.1760

Abstract

Introduction: According to theoretical and empirical research, the characteristic of narcissism is associated with behavioral characteristics such as selfishness, constant need for attention and admiration from others, unreasonable expectations from others, abusing others to achieve one's desires, disregard for others' feelings, dominance over decision-making processes and unwillingness to receive feedback from others, arrogant behavior, and excessive reward seeking. These characteristics can affect the performance and added value of the company.
Objective: The purpose of study is to examine the relationship between managers' narcissism with the added value of the company and managers' rewards.
Method: This study is applied in terms of purpose and descriptive-correlational in terms of research method. The statistical population of this study is companies listed on the Tehran Stock Exchange in the period 2016-2023.
Findings: The results of a study of 134 companies using multivariate regression show that there is an inverse and significant relationship between managers' narcissism and value added. The findings also indicate that there is an inverse and significant relationship between managers' narcissism and some components of value added such as employee salary costs, interest costs and depreciation costs. However, no significant relationship was observed between managers' narcissism and a number of other components of value added including retained earnings, dividends and income tax. In addition, the results show that there is a direct and significant relationship between managers' narcissism and their compensation.
Conclusion: The results of this study can be of great help to decision makers in selecting managers and designing development strategies.

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Journal of Sustainable Human Resource Management
Volume 7, Issue 13
March 2026
Pages 277-297

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