The Effect of Chief Executive Officer (CEO's) Narcissism and Hubris on the Relationship between Corporate Stability and Financial Performance

Paying attention to the issue of sustainability in the financial and economic literature has attracted the attention of many researchers, and various aspects of this issue, including environmental, social, managerial and economic, have been examined in various researches. Knowing the effects that may be effective from the implementation of sustainability policies by companies on their performance, and in this regard, knowing the dimensions of the psychological personalities of managers as those responsible for the implementation of such policies led us to investigate the effect of the CEO's self-infatuation and hubris on the relationship between corporate sustainability and financial performance. The statistical society of this research included the companies accepted in the capital market of Tehran during the financial period of 2010 to 2019, and finally, after the implementation of the sampling method, the number of 1210 companies entered in the final sample. Three hypotheses have been proposed to investigate this research. The regression method used was the multivariate regression method. The results obtained from the regression show that corporate sustainability has a significant and positive effect on the company's financial performance at a significance level of 0.05, and also, the moderating role of CEO narcissism in the relationship between corporate sustainability and financial performance has been confirmed at a significance level of 0.05. The results of the hypotheses, in line with the results of previous researches and consistent with them, confirm the influence of behavioral and personality factors on the relationship between corporate sustainability and financial performance.