Dark Triad Personality Traits and Selective Hedging

TAF Working Paper No. 60/May 2021

76 Pages Posted: 28 May 2021

See all articles by Matthias Pelster

Matthias Pelster

Paderborn University

Annette Hofmann

St John's University - School of Risk Management

Nina Klocke

Paderborn University

Sonja Warkulat

Paderborn University

Date Written: May 26, 2021

Abstract

We study the relationship between risk managers' dark triad personality traits (Machiavellianism, narcissism, and psychopathy) and their selective hedging activities. Using a primary survey of 412 professional risk managers, we find that managers with dark personality traits are more likely to engage in selective hedging than those without. This effect is particularly pronounced for older, male, and less experienced risk managers. The effect is also stronger in smaller firms, less centralized risk management departments, and family-owned firms, and it cannot be explained by managerial (over)confidence.

Keywords: Managers, personality traits, corporate risk management, selective hedging.

JEL Classification: G30, G34, G39.

Suggested Citation

Pelster, Matthias and Hofmann, Annette and Klocke, Nina and Warkulat, Sonja, Dark Triad Personality Traits and Selective Hedging (May 26, 2021). TAF Working Paper No. 60/May 2021 , Available at SSRN: https://ssrn.com/abstract=3853954 or http://dx.doi.org/10.2139/ssrn.3853954

Matthias Pelster (Contact Author)

Paderborn University

Warburger Str. 100
Paderborn, 33098
Germany

Annette Hofmann

St John's University - School of Risk Management ( email )

8000 Utopia Parkway
Queens, NY 11439
United States

Nina Klocke

Paderborn University ( email )

Warburger Str. 100
Paderborn, 33098
Germany

Sonja Warkulat

Paderborn University ( email )

Warburger Str. 100
Paderborn, 33098
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
18
Abstract Views
174
PlumX Metrics