IMPACT OF CEO NARCISSISM ON FORWARD LOOKING DISCLOSURE: EVIDENCE FROM PAKISTAN.

Abstract

This study examines the relationship between CEO narcissism and forward-looking disclosure (FLD) among non-financial firms listed on Pakistan's PSX-100 Index. Using a sample of 40 firms over 2013-2022, we employ OLS regression to test whether narcissistic CEOs provide more extensive forward-looking information. The results demonstrate a significant positive association between CEO narcissism and FLD levels, indicating that narcissistic CEOs utilize forward-looking statements as a strategic communication tool to enhance visibility and influence stakeholder perceptions. Analysis reveals that narcissistic CEOs particularly excel at providing qualitative forward-looking information and show strong preferences for financial, non-financial, and environmental disclosures. This study contributes the first empirical evidence of the CEO narcissism-disclosure relationship in an emerging market context, extending upper echelon theory to corporate communication practices. The findings offer practical implications for boards, regulators, and investors by highlighting how CEO psychological characteristics shape corporate transparency decisions.