Narcissistic greenwashing: a cross-country evidence on the divergent paths to stock price crash risk

Setiawan, Yan Christianto and Rudiawarni, Felizia Arni and Feliana, Yie Ke and Kurnianto, Sigit (2026) Narcissistic greenwashing: a cross-country evidence on the divergent paths to stock price crash risk. Journal of Financial Reporting and Accounting. ISSN 2042-5856

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Abstract

The purpose of this paper is to investigate the impact of greenwashing on stock price crash risk (SPCR) and to examine the context-dependent moderating effects of CEO narcissism and ownership structure across two distinct institutional settings, Indonesia and Singapore. This study utilizes a composite ESG score dataset from LSEG and Bloomberg for the period of 2019-2024. The author uses panel data regression models to test the hypotheses. The findings reveal a contextual divergence associated with executive personality. In Indonesia, CEO narcissism exacerbates the positive effect of greenwashing on SPCR. Conversely, in Singapore, CEO narcissism alleviates this risk. This study demonstrates that the psychological trait of CEO narcissism can provoke varying market reactions depending on the institutional environment. Stakeholders should consider both the CEO’s personality traits and the institutional framework when evaluating ESG disclosures. Regulatory agencies in emerging markets should be stricter in verifying ESG disclosures issued by narcissistic CEOs, given the greater risk of opportunism. This study examines the interplay between CEO narcissism as a psychological trait and ownership structure as a governance mechanism in moderating the effects of greenwashing. The development of the "narcissistic greenwashing" concept represents a novel contribution that significantly enhances the literature on corporate governance and behavioral finance.

Item Type:	Article
Additional Information:	Deposit Licensing Statement: This article is published in the Journal of Financial Reporting and Accounting, published by Emerald Publishing Limited. The final Version of Record is available online via the DOI: https://doi.org/10.1108/JFRA-02-2026-0104 at Emerald Insight (www.emerald.com/insight). This Author Accepted Manuscript (AAM) is deposited under the Creative Commons Attribution Non-commercial International Licence 4.0 (CC BY-NC 4.0). Any reuse is allowed in accordance with the terms outlined by the licence. To reuse the AAM for commercial purposes, permission should be sought by visiting https://www.emeraldgrouppublishing.com/publish-with-us/author-policies/author-rights#contact
Uncontrolled Keywords:	Narcissistic greenwashing, CEO narcissism, Greenwashing, Stock price crash risk, Institutional ownership, Managerial ownership, Corporate governance
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting
Divisions:	Faculty of Business and Economic > Department of Accounting
Depositing User:	YAN CHRISTIANTO SETIAWAN
Date Deposited:	15 Oct 2026 04:11
Last Modified:	16 Oct 2026 04:08
URI:	http://repository.ubaya.ac.id/id/eprint/51373

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