Dark Triad Personality Traits and Selective Hedging
TAF Working Paper No. 60/May 2021
76 Pages Posted: 28 May 2021
Date Written: May 26, 2021
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: Suggested Citation