CEO Signature Size: A Sign of Bad Performance? An Empirical Study on the Predictive Value of CEO Signature Size, as a Proxy for Narcissism, on Operating Firm Performance

Abstract: Recently there has been an increased focus on CEO personalities and how the trait of narcissism affects decision-making, firm outcomes and stakeholders. The aim of this study is to test whether CEOs' signature size, as an assumed proxy for narcissism, is predictive of operating performance, performance extremeness and fluctuations. By replicating a recently published study on a sample of 243 Swedish CEOs in 159 firms between 2005 and 2017, and extending our analysis, we find no support for a relationship between CEO signature size and operational firm performance. Thus, this thesis contradicts previous research and puts the unobtrusive narcissism measure signature size as well as the generalizability of previous findings into question. This study contributes to the exploratory area of CEO narcissism and its proposed link to financial performance.