Research

Publications

CEO's Narcissism and Opportunistic Insider Trading - with K. John, J. Jiang, and J. Zhang, Journal of Corporate Finance, 2025

• Featured in the Financial Times, "Narcissist CEOs like risky insider trading and are bad at it "

Abstract: Narcissism is a multifaceted personality trait that profoundly influences individuals' cognition, emotions, and actions. This study investigates the relationship between narcissistic CEOs and their engagement in opportunistic insider trading. Utilizing a quantitative measure of CEOs' narcissism derived from textual analysis, we find that CEOs with a higher level of narcissism engage in opportunistic insider trading more intensely. To mitigate endogeneity concerns, we employ various rigorous approaches, including matching, instrumental variable, Heckman's two-step sample selection model, and falsification tests. Through cross-sectional analysis, we find that the impact of CEOs' narcissism on opportunistic insider trading is more pronounced among CEOs with limited legal knowledge, facing weaker external and internal monitoring pressure, working at larger firms, and being male. In addition, we demonstrate that the insider trades of narcissistic CEOs are less profitable and less informative than those of non-narcissistic CEOs, as evidenced by subsequent stock performance.

CEO Narcissism and the Agency Cost of Debt - with R. Anderson, Journal of Empirical Finance, 2024

Abstract: This study investigates the relationship between CEO narcissism and debt financing costs, highlighting a potential trade-off between leadership traits and firm financial well-being. While prior research has identified potential benefits associated with narcissistic CEOs, such as enhanced innovation, we demonstrate that such leadership incurs higher borrowing costs, as evidenced by elevated bond yields in firms led by narcissistic executives. This effect is amplified for grandiose narcissists, suggesting that investors are particularly wary of their risk-taking tendencies. Leveraging a natural experiment, we establish a robust causal link between narcissism and debt costs, revealing higher bond yield premiums demanded by investors in firms with narcissistic CEOs. These findings underscore the critical importance of considering CEO personality traits, particularly narcissism when evaluating corporate governance practices and ensuring optimal alignment with stakeholders' interests. 

Measuring CSR, ESG, and Sustainability - with S. Oh, International Finance Review, 2024

• Non-peer reviewed book chapter. 

   Abstract: We examine the spectrum of sustainability, corporate social responsibility (CSR), and environmental, social, and governance (ESG) databases, highlighting the variety of methodologies for generating ESG scores and their consequences for empirical finance research and investment strategy development. We begin by exploring the conceptual distinctions and overlaps among CSR, ESG, and sustainability initiatives, moving to address the challenges associated with measuring and applying these databases. We present a comparative analysis of these databases, which directly contribute to the discourse on sustainable finance. Furthermore, we acknowledge the prevalent challenges in ESG metric development, such as data availability, comparability issues, and the dynamic nature of ESG factors. Through our review, we find that, although there are efforts toward accurate representation, significant discrepancies exist in the extent to which these databases capture the complexities of CSR, ESG, and sustainability. We uncover a lack of comparability among these databases and the empirical studies leveraging them, which complicates the synthesis of research findings and the development of a coherent investment strategy based on these principles. The study advocates for future research to refine ESG scoring methodologies, improve metrics’ comparability across databases, and foster a more sustainable and responsible investment ecosystem. 

Working Papers

Female Leaders and Mergers and Acquisition Targets (Under Review) - with K. Goudarzi, X. Guo, and L. Xu

Abstract: We examine whether CEO gender influences acquisition targeting. Using S&P 1500 firms from 1996–2022, we find that female-led firms are nearly 50% more likely to be acquired. The effect is concentrated in unrelated acquisitions, where integration demands are greatest. These transactions are more likely to retain the target CEO, close more quickly, and generate stronger post-merger performance. The evidence suggests that acquirers act rationally, valuing the communication, collaboration, and risk-management skills of female CEOs that enhance integration and long-run value creation, rather than reflecting bias against female leaders.

Collateral Impact: How Rivalry Transmits Activism Threats Across Competitive Markets (Under Review)- with K. Goudarzi and H. Shaheen

Abstract: This study examines how shareholder activism directed at one firm can indirectly influence the strategic actions of its non-targeted rivals. Using the Awareness–Motivation–Capability (AMC) framework, we theorize that firms respond to successful activism campaigns at rivals by adjusting their competitive growth and social responsibility actions. We distinguish between financially motivated shareholder activism, which carries implicit disciplinary threats, and socially motivated shareholder activism, which carries implicit reputational threats. We argue that financially motivated campaigns trigger non-targeted rivals to reduce both competitive growth and CSR actions, while socially motivated campaigns reduce growth but increase CSR actions. We further propose that rivalry intensity, shareholder composition and firm status moderate these relationships. We contribute to research on interorganizational diffusion, shareholder activism and social movement literature.

COVID-19, Growth of Virtual Meeting Technology, and Sector REIT's Performance - with W. Wang

Work in Progress