The Moderating Effect of CEO Narcissism on ESG Performance and Firm Value: An Emerging Market Analysis
研究南非上市公司数据发现，ESG投资能提升企业价值，但CEO自恋会削弱这一正向关系，为企业优化ESG回报和防范领导风险提供参考。
ABSTRACT This paper examines the relationship between environmental, social, and governance (ESG) practices and firm value in South Africa. Drawing on the upper echelons theory, the study further highlights how CEO traits influence the ESG–firm value relationship and explores the moderating role of CEO narcissism. Utilizing a balanced panel dataset of listed firms on the Johannesburg Stock Exchange from 2014 to 2022, findings reveal that effective investment in ESG practices enhances firm value. However, CEO narcissism weakens the positive relationship between ESG performance and firm value. Robustness analyses using the two‐stage least squares, the Heckman two‐stage model, and entropy balancing validate our findings. By focusing on an emerging market that places value on responsible investing, the study offers insights for firms seeking to maximize ESG returns while mitigating potential leadership risks.