The Dark Side of Socially Mediated Rewards: How Social Status and Narcissism Affect Managerial Reporting

摘要: In this paper, we examine how opportunities for social comparison affect the willingness of managers to report honestly. Drawing on research in psychology status and narcissism, expect desire compete with preferences honesty, especially when feel challenged be top performer. To test our predictions, use an experimental design that orthogonalizes financial incentives (cash compensation) from non-financial (social status). Consistent find participants inflate their reported performance settings reward high status. Further, show a stable measurable personality trait, induces performance, particularly participant views task as important. We also provide evidence these latter influences are pronounced As discuss, results have important implications managerial reporting systems, firm hiring practices, socially mediated rewards motivate control employees.