Investigating the Relationship between Managers’ Narcissism and Inventory Shortages with the Moderating Effect of Auditor Tenure in Companies

Document Type : Original Article

Authors

Saeed Namazi Baygi ¹

Mohammad Hossein Vadeei ²

Ahmad Alizadeh ¹

¹ independent

² Ferdowsi University of mashhad

https://doi.org/10.22067/tmj.2026.93685.1709

Abstract

Abstract
Decisions made by narcissistic CEOs can have significant consequences for companies, and these effects may be influenced by the tenure of the external auditor. Accordingly, the present study aims to investigate the relationship between CEO narcissism and inventory shortages, with a focus on the moderating role of the auditor’s tenure in publicly traded companies. This research is practical in nature and analyzes real data from firms listed on the Tehran Stock Exchange. To achieve the research objectives, data from 140 companies over the period 2016 to 2023 were collected and analyzed. Multivariate regression models with panel data were employed to test the hypotheses. The findings reveal a positive and significant association between CEO narcissism and inventory shortages. Furthermore, auditor tenure was found to strengthen this relationship as a moderating factor.
In conclusion, the study suggests that companies with narcissistic CEOs and longer auditor tenures are more likely to experience inventory shortages. These results offer valuable insights for investors, creditors, and regulatory bodies in assessing corporate financial and managerial behavior.

Keywords

Managers’ Narcissism

Inventory Shortages

Auditor Tenure

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