MAMPUKAH STRUKTUR MODAL MEMEDIASI PENGARUH CEO NARCISSISM DAN OVERCONFIDENCE TERHADAP KINERJA PERUSAHAAN?
Keywords:
CEO Narcissism, CEO Overconfidence, Capital Structure, Firm Performance
Abstract
CEOs in corporations may not always employ logical reasoning when making decisions and may be swayed by personal characteristics such as overconfidence and narcissism. The decisions made by CEOs ultimately affect the company's performance. This study examines how CEO overconfidence and narcissism affect firm performance in the presence of capital structure variables. The study surveyed 39 infrastructure companies listed on the Indonesia Stock Exchange between 2017 and 2021, totaling 175 observations. The data were analyzed using Stata 16 to test the direct effect, and indirect effects were tested using the Sobel test. Results indicate that neither CEO overconfidence nor narcissism has a significant impact on a firm's performance, as measured by ROA or ROE. Furthermore, CEO narcissism has no impact on firm performance mediated by capital structure, while capital structure can mediate the effect of CEO overconfidence on ROA but not on ROE
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References
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Bivianti, V., Stefani, M. E., & Yuniarsih, N. (2022). The Effect of Executive Characteristics, CEO Overconfidence, Capital Intensity on Tax Avoidance. STIESIA, 895–906.
Buyl, T., Boone, C., & Wade, J. B. (2019). CEO Narcissism, Risk-Taking, and Resilience: An Empirical Analysis in U.S. Commercial Banks. Journal of Management, 45(4), 1372–1400. https://doi.org/10.1177/0149206317699521
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Chang, L., & Lin, T. J. (2022). The Association among CEO Overconfidence, Ownership Structure and Financial Performance. European Journal of Business and Management Research, 7(2), 37–44.
Christian, P. G., & Sulistiawan, D. (2022). When Narcissus Became a CEO: CEO Narcissism and Its Effect on Earnings Management. Jurnal Dinamika Akuntansi Dan Bisnis, 9(2), 135–148. https://dx.doi.org/10.24815/JDAB.V9I2.24947
Colline, F. (2022). The Mediating Effect of Debt Equity Ratio on The Effect of Current Ratio, Return on Equity and Total Asset Turnover on Price to Book Value. Peer-Reviewed Article Jurnal Keuangan Dan Perbankan, 26(1), 2443–2687. https://doi.org/10.26905/jkdp.v26i1.6882
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Evbayiro-Osagie, E. I., & Enadeghe, I. B. (2022). Capital Structure and Performance of Non-Financial Firms in Sub-Sahara Africa. International Journal of Finance Research, 3(1), 49–62. https://doi.org/10.47747/ijfr.v3i1.682
Galariotis, E., Louca, C., Petmezas, D., & Wang, S. (2022). Agency Cost of Debt and Inside Debt: The Role of CEO Overconfidence. British Journal of Management, 1–26. https://doi.org/10.1111/1467-8551.12661
Ham, C., Seybert, N., & Wang, S. (2018). Narcissism is a bad sign: CEO signature size, investment, and performance. Review of Accounting Studies, 23(1), 234–264. https://doi.org/10.1007/s11142-017-9427-x
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Kasenda, F. (2020). Determinants of Capital Structure and its Implications for Financial Performance of Construction Services Companies. PalArch’s Journal of Archaeology of Egypt/ Egyptology, 17(7), 2334–2346.
Kim, H. S., & Jang, S. C. (2020). CEO Overconfidence and Firm Performance: The Moderating Effect of Restaurant Franchising. Cornell Hospitality Quarterly, 1–17. https://doi.org/10.1177/1938965519899926
Korablev, D., & Podukhovich, D. (2022). CEO Power and Risk-taking Intermediate Role of Personality Traits. Journal of Corporate Finance Research, 16(1), 136–145. https://doi.org/10.17323/j.jcfr.2073-0438.16.1.2022.136-145
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Mundi, H. S., & Kaur, P. (2019). Impact of CEO Overconfidence on Firm Performance: An Evidence from S&P BSE 200. Vision, 23(3), 234–243. https://doi.org/10.1177/0972262919850935
Mundi, H. S., & Kaur, P. (2022). CEO Overconfidence and Capital Structure Decisions: Evidence from India. Vikalpa, 47(1), 19–37. https://doi.org/10.1177/02560909221079270
Naseem, M. A., Lin, J., Rehman, R. ur, Ahmad, M. I., & Ali, R. (2019). Does capital structure mediate the link between CEO characteristics and firm performance? Emerald Insight, 58(1), 164–181. https://doi.org/10.1108/MD-05-2018-0594
Natonis, S. A. (2019). Pengaruh Aspek Keperilakukan CEO terhadap Kinerja Perusahaan: Sebuah Studi Literatur. Owner, 3(2), 250–259. https://doi.org/10.33395/owner.v3i2.165
Olayemi, O. O., & Fakayode, O. P. (2021). Effect of Capital Structure on Financial Performance of Quotes Manufacturing Companies in Nigeria. European Journal of Accounting, Auditing and Finance Research, 9(5), 73–89. www.eajournals.org
Olusola, B. E., Mengze, H., Chimezie, M. E., & Chinedum, A. P. (2022). The Impact of Capital Structure on Firm Performance-Evidence from Large Companies in Hong Kong Stock Exchange. Open Journal of Business and Management, 10(3), 1332–1361. https://doi.org/10.4236/ojbm.2022.103072
Orji, A., O, N. E., & N, A. (2021). Effect of Debt Financing on Firms Performance in Nigeria. Journal of Accounting and Financial Management E, 7(3), 60–72. www.iiardjournals.org
Orlu, L., Amini, M.-A. C., & Amadi, C. R. (2022). Debt Capital and Financial Performance of Commercial Banks in Nigeria. International Journal of Economics and Financial Management, 7(1), 43–64. www.iiardjournals.org
Philemon, M. K., Josephat, C. K., & Ernest, S. (2022). The Mediating Effect of CEO Power on Creditor Rights and Capital Structure among Firms Listed in Nairobi Securities Exchange. African Journal of Education, Science and Technology, 7(2), 68–76.
Rajamani, K. (2021). Debt Financing and Financial Performance: Empirical Evidence of Indian SMEs Listed in BSE-SME Platform. Eurasian Economic Perspectives, 217–230. https://doi.org/10.1007/978-3-030-63149-9_14
Rusydi, M. (2021). The Impact of CEO Narcissism Behavior on Firm Performance through Earnings Management. ATESTASI: Jurnal Ilmiah Akuntansi, 4(1), 53–60. https://doi.org/10.33096/atestasi.v4i1.645
Sahraoui, F. Z., & Merhoun, M. (2022). Risk and Profitability in Algerian Banks Using Macroeconomic and Bank Variables: A Panel Regression Analysis. Revue d’Economie et de Statistique Appliquée, 19(1), 6–20.
Sepriani, L., & Candy. (2022). The Effect of Corporate Governance on Corporate Value: The Role of Enterprise Risk Management. Matrik: Jurnal Manajemen, Strategi Bisnis Dan Kewirausahaan, 16(2), 225–241. https://doi.org/10.24843/matrik:jmbk.2022.v16.i02.p04
Uremadu, S. O., & Onyekachi, O. (2019). The Impact of Capital Structure on Corporate Performance in Nigeria: A Quantitative Study of Consumer Goods Sector. Agricultural Research & Technology: Open Access Journal, 19(5), 212–221. https://doi.org/10.19080/ARTOAJ.2019.19.556106
Yinusa, O. G., Adelopo, I., Rodionova, Y., & Samuel, L. O. (2019). Capital Structure and Firm Performance in Nigeria. African Journal of Economic Review, 7(1), 31–56.
Youssef, S. (2022). Narcissism as a Mediator of the Relationship between Entrepreneurial Orientation and Firm Performance. International Journal of Family Business Practices, 5(1), 72–86.
Zhang, L., Liang, B., Bi, D., Zhou, Y., & Yu, X. (2021). Relationships Among CEO Narcissism, Debt Financing and Firm Innovation Performance: Emotion Recognition Using Advanced Artificial Intelligence. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.734777
Aziz, S., & Abbas, U. (2019). Effect of Debt Financing on Firm Performance: A Study on Non-Financial Sector of Pakistan. Open Journal of Economics and Commerce, 2(1), 8–15.
Bala, A. R. B., & Babangnida, M. A. (2022). Capital Structure and Financial Performance of Quoted Deposit Money Banks (DMBs) in Nigeria. Asian Journal of Economics, Business and Accounting, 22(5), 1–10. https://doi.org/10.9734/ajeba/2022/v22i530557
Batool, A., Awan, T., & Chughtai, S. (2022). Impact of CEO Overconfidence on Corporate Financing Decision with Mediating Role of Risk Perception. Institute of Business Administration Karachi, 16(2), 77–95. https://doi.org/10.54784/1990-6587.1375
Bivianti, V., Stefani, M. E., & Yuniarsih, N. (2022). The Effect of Executive Characteristics, CEO Overconfidence, Capital Intensity on Tax Avoidance. STIESIA, 895–906.
Buyl, T., Boone, C., & Wade, J. B. (2019). CEO Narcissism, Risk-Taking, and Resilience: An Empirical Analysis in U.S. Commercial Banks. Journal of Management, 45(4), 1372–1400. https://doi.org/10.1177/0149206317699521
Capalbo, F., Frino, A., Lim, M. Y., Mollica, V., & Palumbo, R. (2017). The Impact of CEO Narcissism on Earnings Management. Abacus, 54(2), 210–226. https://doi.org/10.1111/abac.12116
Chang, L., & Lin, T. J. (2022). The Association among CEO Overconfidence, Ownership Structure and Financial Performance. European Journal of Business and Management Research, 7(2), 37–44.
Christian, P. G., & Sulistiawan, D. (2022). When Narcissus Became a CEO: CEO Narcissism and Its Effect on Earnings Management. Jurnal Dinamika Akuntansi Dan Bisnis, 9(2), 135–148. https://dx.doi.org/10.24815/JDAB.V9I2.24947
Colline, F. (2022). The Mediating Effect of Debt Equity Ratio on The Effect of Current Ratio, Return on Equity and Total Asset Turnover on Price to Book Value. Peer-Reviewed Article Jurnal Keuangan Dan Perbankan, 26(1), 2443–2687. https://doi.org/10.26905/jkdp.v26i1.6882
Cragun, O. R., Olsen, K. J., & Wright, P. M. (2019). Making CEO Narcissism Research Great: A Review and Meta-Analysis of CEO Narcissism. Journal of Management, 46(6), 1–29. https://doi.org/10.1177/0149206319892678
Dat, N. D. (2022). Impact of Capital Structure on Firm Performance of Food and Beverage Listed Companies on the Stock Exchange of Vietnam. International Journal of Current Science Research and Review, 05(9), 3425–3432. https://doi.org/10.47191/ijcsrr/V5-i9-21
Digdowiseiso, K., Subiyanto, B., & Lubis, R. F. (2022). Analisis Determinan Kualitas Pelaporan Keuangan Perusahaan Non Jasa Keuangan di Bursa Efek Indonesia. Jurnal Ilmiah Akuntansi Dan Keuangan, 4(6), 2581–2595.
Ernawan, K., & Daniel, D. R. (2020). Pengukuran Narsisme CEO dalam Penelitian di Bidang Bisnis, Manajemen, dan Akuntansi: Sebuah Studi Literatur. JURNAL AKUNTANSI DAN BISNIS: Jurnal Program Studi Akuntansi, 6(1), 46–58. https://doi.org/10.31289/jab.v6i1.2861
Evbayiro-Osagie, E. I., & Enadeghe, I. B. (2022). Capital Structure and Performance of Non-Financial Firms in Sub-Sahara Africa. International Journal of Finance Research, 3(1), 49–62. https://doi.org/10.47747/ijfr.v3i1.682
Galariotis, E., Louca, C., Petmezas, D., & Wang, S. (2022). Agency Cost of Debt and Inside Debt: The Role of CEO Overconfidence. British Journal of Management, 1–26. https://doi.org/10.1111/1467-8551.12661
Ham, C., Seybert, N., & Wang, S. (2018). Narcissism is a bad sign: CEO signature size, investment, and performance. Review of Accounting Studies, 23(1), 234–264. https://doi.org/10.1007/s11142-017-9427-x
Islam, Z. ul, & Iqbal, M. M. (2022). The Relationship Between Capital Structure and Firm Performance: New Evidence from Pakistan. Journal of Asian Finance, Economics and Business, 9(2), 81–92. https://doi.org/10.13106/jafeb.2022.vol9.no2.0081
Kasenda, F. (2020). Determinants of Capital Structure and its Implications for Financial Performance of Construction Services Companies. PalArch’s Journal of Archaeology of Egypt/ Egyptology, 17(7), 2334–2346.
Kim, H. S., & Jang, S. C. (2020). CEO Overconfidence and Firm Performance: The Moderating Effect of Restaurant Franchising. Cornell Hospitality Quarterly, 1–17. https://doi.org/10.1177/1938965519899926
Korablev, D., & Podukhovich, D. (2022). CEO Power and Risk-taking Intermediate Role of Personality Traits. Journal of Corporate Finance Research, 16(1), 136–145. https://doi.org/10.17323/j.jcfr.2073-0438.16.1.2022.136-145
Kusiyah, Kalbuana, N., & Rusdiyanto. (2022). Pengaruh Narsisme CEO dan Arus Kas Bebas terhadap Kinerja Perusahaan. Jurnal Riset Akuntansi Politala, 5(1), 36–45. http://jra.politala.ac.id/index.php/JRA/index
Mira, M., Putri, L. N., Nurmagfirah, Indrayani, S., & Arman, A. (2022). Pengaruh CEO Narsisme dan Ukuran Perusahaan terhadap Kinerja Keuangan pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia. Jurnal Ilmiah Akuntansi Manajemen, 5(1), 15–22. https://doi.org/10.35326/jiam.v5i1.2045
Mundi, H. S., & Kaur, P. (2019). Impact of CEO Overconfidence on Firm Performance: An Evidence from S&P BSE 200. Vision, 23(3), 234–243. https://doi.org/10.1177/0972262919850935
Mundi, H. S., & Kaur, P. (2022). CEO Overconfidence and Capital Structure Decisions: Evidence from India. Vikalpa, 47(1), 19–37. https://doi.org/10.1177/02560909221079270
Naseem, M. A., Lin, J., Rehman, R. ur, Ahmad, M. I., & Ali, R. (2019). Does capital structure mediate the link between CEO characteristics and firm performance? Emerald Insight, 58(1), 164–181. https://doi.org/10.1108/MD-05-2018-0594
Natonis, S. A. (2019). Pengaruh Aspek Keperilakukan CEO terhadap Kinerja Perusahaan: Sebuah Studi Literatur. Owner, 3(2), 250–259. https://doi.org/10.33395/owner.v3i2.165
Olayemi, O. O., & Fakayode, O. P. (2021). Effect of Capital Structure on Financial Performance of Quotes Manufacturing Companies in Nigeria. European Journal of Accounting, Auditing and Finance Research, 9(5), 73–89. www.eajournals.org
Olusola, B. E., Mengze, H., Chimezie, M. E., & Chinedum, A. P. (2022). The Impact of Capital Structure on Firm Performance-Evidence from Large Companies in Hong Kong Stock Exchange. Open Journal of Business and Management, 10(3), 1332–1361. https://doi.org/10.4236/ojbm.2022.103072
Orji, A., O, N. E., & N, A. (2021). Effect of Debt Financing on Firms Performance in Nigeria. Journal of Accounting and Financial Management E, 7(3), 60–72. www.iiardjournals.org
Orlu, L., Amini, M.-A. C., & Amadi, C. R. (2022). Debt Capital and Financial Performance of Commercial Banks in Nigeria. International Journal of Economics and Financial Management, 7(1), 43–64. www.iiardjournals.org
Philemon, M. K., Josephat, C. K., & Ernest, S. (2022). The Mediating Effect of CEO Power on Creditor Rights and Capital Structure among Firms Listed in Nairobi Securities Exchange. African Journal of Education, Science and Technology, 7(2), 68–76.
Rajamani, K. (2021). Debt Financing and Financial Performance: Empirical Evidence of Indian SMEs Listed in BSE-SME Platform. Eurasian Economic Perspectives, 217–230. https://doi.org/10.1007/978-3-030-63149-9_14
Rusydi, M. (2021). The Impact of CEO Narcissism Behavior on Firm Performance through Earnings Management. ATESTASI: Jurnal Ilmiah Akuntansi, 4(1), 53–60. https://doi.org/10.33096/atestasi.v4i1.645
Sahraoui, F. Z., & Merhoun, M. (2022). Risk and Profitability in Algerian Banks Using Macroeconomic and Bank Variables: A Panel Regression Analysis. Revue d’Economie et de Statistique Appliquée, 19(1), 6–20.
Sepriani, L., & Candy. (2022). The Effect of Corporate Governance on Corporate Value: The Role of Enterprise Risk Management. Matrik: Jurnal Manajemen, Strategi Bisnis Dan Kewirausahaan, 16(2), 225–241. https://doi.org/10.24843/matrik:jmbk.2022.v16.i02.p04
Uremadu, S. O., & Onyekachi, O. (2019). The Impact of Capital Structure on Corporate Performance in Nigeria: A Quantitative Study of Consumer Goods Sector. Agricultural Research & Technology: Open Access Journal, 19(5), 212–221. https://doi.org/10.19080/ARTOAJ.2019.19.556106
Yinusa, O. G., Adelopo, I., Rodionova, Y., & Samuel, L. O. (2019). Capital Structure and Firm Performance in Nigeria. African Journal of Economic Review, 7(1), 31–56.
Youssef, S. (2022). Narcissism as a Mediator of the Relationship between Entrepreneurial Orientation and Firm Performance. International Journal of Family Business Practices, 5(1), 72–86.
Zhang, L., Liang, B., Bi, D., Zhou, Y., & Yu, X. (2021). Relationships Among CEO Narcissism, Debt Financing and Firm Innovation Performance: Emotion Recognition Using Advanced Artificial Intelligence. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.734777
Published
2023-07-28
How to Cite
Candy, C., & Delfina, D. (2023, July 28). MAMPUKAH STRUKTUR MODAL MEMEDIASI PENGARUH CEO NARCISSISM DAN OVERCONFIDENCE TERHADAP KINERJA PERUSAHAAN?. Jurnal Akuntansi Dan Keuangan (JAK), 28(2), 155-162. https://doi.org/https://doi.org/10.23960/jak.v28i2.1115
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