Liu, H., Liu, Y., Chiang, J. T. J., Wang, S., & Wang, H. (2024). When self-love is threatened: Adopting a dual-type view to understand leader narcissism and its impacts on LMX and newcomer work outcomes. Personnel Psychology, 77(2), 411-439. https://doi.org/10.1111/peps.12555
An Oracle executive once quipped, “The difference between God and Larry is that God does not believe he is Larry,” in reference to the famously self-assured CEO Larry ELLISON. From Bill GATES and Steve JOBS to Jeff BEZOS and Mark ZUCKERBERG, leaders labelled as narcissists have captivated the public while building transformative businesses. But working for these personalities can be challenging— especially without the lure of lucrative stock options. A recent study explores how the influence of narcissistic leaders plays out for new employees, revealing both the benefits and the drawbacks of their leadership styles.
Narcissism isn’t one-dimensional; it comes in distinct forms, each with unique effects. Leaders driven by narcissistic admiration thrive on praise, exuding confidence and charm, and often appearing charismatic. In contrast, those prone to narcissistic rivalry view others as threats, creating a more competitive and hostile environment, especially toward newcomers. To measure the impact of these narcissistic tendencies, researchers surveyed 151 pairs of supervisornewcomer from six major Chinese companies across sectors such as construction, finance, and pharmaceuticals over a period of 4 months following the newcomers’ entry. Supervisors reported their narcissistic style (both narcissistic admiration and narcissistic rivalry) and their perceived similarity to and threat from their newcomers, while newcomers rated their acceptance-seeking behaviours from their supervisors, along with their relationship quality with the supervisor, job satisfaction, and performance.
Results confirm that supervisors driven by narcissistic admiration felt less threatened by new employees, while those motivated by narcissistic rivalry viewed newcomers as a threat. This perceived threat strained supervisor-newcomer relationships, reducing both job satisfaction and performance for newcomers. Supervisors driven by narcissistic admiration who also shared some similarities with new hires—such as work or life experience—felt even less threatened, but narcissistic rivalry intensified the sense of threat felt by some supervisors. Notably, efforts by newcomers to seek acceptance from their supervisors had no
significant impact on these dynamics. Regardless of the type of narcissism, it clearly has a significant impact on how new employees view their work and how they are evaluated by their supervisors.
The findings suggest that companies should move beyond standard onboarding programmes, as a supervisor’s narcissistic tendencies can skew evaluations of new employees. Alongside offering leadership training in social skills and communication to supervisors, firms should gather feedback on new hires from various sources to counterbalance
the potential biases of narcissistic supervisors.
As for those of us trying to secure a job or pass probation? We should try identifying the narcissism type of our prospective boss—emphasising shared experiences and personal interests with admiration-driven supervisors, while exercising humility around those prone to narcissistic rivalry.
If you can’t beat narcissistic leaders, at least learn to manage them!
Prof. Siting WANG Assistant Professor Department of Management, Marketing and Information Systems
Li, B., Liu, Z., Pittman, J. A., & Yang, S. (2024). Institutional dual holdings and expected crash risk: Evidence from mergers between lenders and equity holders. Contemporary Accounting Research, 41(3), 1819-1850. https://doi.org/10.1111/1911-3846.12966
Was Mark TWAIN ahead of his time in finance?
After all, he once said, “A banker is a fellow who lends you his umbrella when the sun is shining but wants it back the minute it begins to rain.” An owner, however, builds a roof instead. While financial theory suggests that a firm’s value remains the same whether financed with debt or equity, reality tells a different story—lenders bear most of the downside risk if a firm fails but don’t share in the upside when it succeeds. Perhaps that’s why bankers are often seen as dull gatekeepers limiting a firm’s growth, while bold owners like Elon MUSK or Steve JOBS push boundaries to create value. But what happens when lenders and owners are one and the same?
A recent study examines this dynamic by analysing mergers where creditors double as shareholders. As institutional investors increasingly hold both equity and debt in the same firms, the clash between riskaverse lenders and return-hungry shareholders is becoming harder to ignore. Mergers between lenders and shareholders should not only ease these conflicts but also empower such “dual holders” to demand greater transparency from the firms they own and lend to, since each group typically has access to different information. In addition to cutting through costly information asymmetry, dual holders should also be expected to step up oversight, making it tougher for management to sweep bad news under the rug.
By analysing 1,065 mergers between financial firms from 1996 and 2016, researchers identified 318 firms which ended up having significant institutional ownership and loans from 35 dual holders. These firms were compared with companies having a more standard ownership base (i.e. not dual holders) across metrics like leverage and profitability to see how the options market perceived their risk. The takeaway? The expected stock price crash risk—measured by implied volatility “smirks” that signal investor fears of a steep decline—declined by a whopping 22.8%, with the effect lasting three years. It seems dual holders do have a way of calming the market!
Indeed, findings show that dual holders curb managers’ incentives to conceal bad news, especially when institutional stakes are larger and shareholder-creditor conflicts run deeper. These mergers also drive greater bad news disclosure, particularly in firms with weaker controls. Overall, dual holdings ease shareholdercreditor tensions, strengthen oversight, and lower crash risk. Post-merger, firms are also more likely to issue earnings forecasts, especially when the news is negative. The effect is most significant in firms with high information asymmetry and governance gaps, underscoring the role of dual holders in strengthening accountability. Meanwhile, option investors see dual holders’ commitment to transparency as effective in reducing the potential of a stock price crash.
While motivations may vary between institutional shareholders and lenders, it seems that dual holders can lead to stricter monitoring, better management practices and lower risk. Or, as Gordon Gekko famously put it: “Greed, for lack of a better word, is good.”
The Centre for Sustainable Development Studies (CSDS) of the School of Business at Hong Kong Baptist University (HKBU) conducted a study on the socio-economic status of Mainland immigrants since the pandemic, which was commissioned by the Society for Community Organization (SoCO). HKBU, together with SoCO, announced the study results, revealing that among the grassroots Mainland immigrants who were employed in 2019, 65% were still earning a lower income in 2024 than in 2019, including 21% of those who were unemployed.
In addition, as of last year, more than half of the grassroot Mainland immigrants who were unemployed during the outbreak of COVID-19 had yet to find a job. Even though 15% of them returned to the labour market, their incomes were lower than that prior to the pandemic, revealing the prolonged impact brought about by the pandemic on the income level and employment rate of Mainland immigrants.
Prof. Yuk-shing CHENG, Director of CSDS and Professor of the Department of Accountancy, Economics and Finance at HKBU; Dr. Kin-ming WONG, Associate Director (Knowledge Transfer) of CSDS and Senior Lecturer of the Department of Accountancy, Economics and Finance at HKBU; and the research team from CSDS, analysed the data obtained in the 2021 Population Census and the past, as well as the survey results of SoCO members, in an effort to investigate the impact of the COVID-19 pandemic on Mainland immigrants.
For further details, please refer to the link: https://bit.ly/4iE4k3Q
From self-driving cars to intelligent chatbots, Artificial Intelligence (AI) is rapidly permeating every aspect of human life. But do we really understand the “mind” behind the machine? Can artificial intelligence truly think and feel? That was the central question explored at the HKBU School of Business’s biannual Business Power Lunch on 21st March 2025. The event, focusing on the burgeoning field of AI psychology and its implications for the future of business, drew HKBU scholars, business leaders, senior corporate executives, entrepreneurs, and researchers, including many alumni from the School, igniting a lively intellectual discourse on the complex interplay between humans and artificial intelligence.
Prof. Han ZHANG, Dean of the School of Business, welcomed guests with a toast to new insights and stronger partnerships, setting the stage for an afternoon of thought-provoking discussion. “In a world changing faster than ever,” Prof. ZHANG remarked, “understanding the psychological dimensions of AI is particularly relevant.”
As attendees enjoyed a convivial lunch, Prof. Xu HUANG, Associate Dean (Research & Impact), treated them to a compelling presentation titled “Psychology of AI”. He tackled the intriguing question of whether AI can truly possess a sense of agency or self, exploring the often-experienced illusion of human-like thought and reaction when interacting with AI chatbots. Prof. HUANG noted that while large language models can mimic human conversation, the existence of a genuine AI self remains a mystery.
He also shared insights from his team’s cutting-edge research, which observes interactions between AI agents to understand the “relational humanness” of artificial intelligence. The research has profound implications for business applications, offering a glimpse into the future of AI integration in various industries.
A lively Q&A session, moderated by Prof. Kimmy CHAN, Department of Management, Marketing and Information Systems, followed the presentation, allowing guests to engage directly with experts and delve deeper into the complexities of AI psychology. The Business Power Lunch continues to be a valuable platform for connecting academia and industry, sharing research insights, and exploring new possibilities. This installment’s focus on the psychology of AI proved timely and relevant, leaving attendees with much to consider regarding the future of artificial intelligence and its impact on the business world.
Congratulations to Mr. Lofan Luther BU, our PhD student in Accountancy, on being awarded the 3rd runner-up in the 2024 Madam Kwok Chung Bo Fun PhD Student Research Excellence Awards! These awards were established to recognise and reward the outstanding research excellence and significant achievements of our PhD students.
Luther, your accomplishment is a testament to the remarkable talent within our community. We are truly inspired by your success and eagerly anticipate where your research journey will take you next!
For further details: https://lnkd.in/g3A9bZm9
With the start of the Chinese New Year, we are thrilled to announce that Mr. Sze Lok Lawrence CHOI, a PhD student at HKBU School of Business, has been awarded the AMA Higher Ed SIG Doctoral Student Research Grant 2024.
Lawrence’s innovative research proposal, “Synergies of creativity: Unraveling the influence of designer-AI team on design authenticity and consumer responses,” stood out among numerous applications, earning him one of only six grants awarded this year.
This achievement not only recognises Lawrence’s exceptional work but also highlights the cutting-edge research being conducted at HKBU School of Business in the field of AI and marketing. The grant, awarded by the American Marketing Association’s Higher Education Special Interest Group, will support Lawrence’s study on the intersection of human creativity and artificial intelligence in design processes.
Huge congratulations to our brilliant student, Ms. Shuyu LIANG, for her incredible achievement of publishing two papers in the esteemed Journal of Business Research and Information & Management.
These B+ journals are a testament to her dedication and innovation. Her success is an inspiring beacon for us all to pursue excellence and make a mark in academia! Let’s keep pushing boundaries!
Her paper, “M&A Committees and M&A Performance” has been published in the prestigious Journal of Business Research
Congratulations to our outstanding PhD student, Ms. Yingshuang MA, on her remarkable achievement! Her paper, “M&A Committees and M&A Performance,” has been published in the prestigious—Journal of Business Research, marking a significant milestone in her academic journey.
Her work has earned her the esteemed Postgraduate Research Scholarship from our School of Business, awarded at today’s School of Business Board meeting. We’re incredibly proud of her dedication and success. Let’s celebrate her achievement and let it inspire our community to strive for excellence and make impactful contributions.
For further details about the research paper: https://doi.org/10.1016/j.jbusres.2024.115119
Prof. Yanju LIU
Associate Professor Department of Accountancy, Economics and Finance
Beauty and Accounting Academic Career
Journal of Accounting, Auditing & Finance
https://doi.org/10.1177/0148558X221115115
Prof. Haifeng WANG
Assistant Professor Department of Management, Marketing and Information Systems
Strategic Restraint: When Do HumanCapital-Intensive Companies Choose (Not) to Use Noncompete Agreements?
Strategic Management Journal
https://doi.org/10.1002/smj.3648
Date
Speaker
21 May 2025
09:00-10:30 Zoom
Topic
Centre for Business Analytics and the Digital Economy
Co-hosted with CEIBS, NTU, and NUS
7 May 2025
09:00-10:30 Zoom
Co-hosted with CEIBS, NTU, and NUS
Prof. Roseanne McMANUS Pennsylvania State University
Crazy Like a Fox? Evaluating the Limits of the Madman Theory in International Politics
Prof. Lori YUE Columbia University
Firms’ Rhetorical Nationalism: Theory, Measurement, and Evidence from a Computational Analysis of Chinese Public Firms
The Research Espresso, a bimonthly e-publication covering everything you need to know about the latest research developments at the HKBU School of Business, focuses on four key areas: Research Insights (the main research topic of the month), Research Excellence (recognition of faculty members’ research achievements), News (research-related updates), and Seminars (sharing research skills and knowledge).
The idea is to provide business practitioners with the most recent research findings from the School‘s faculty. We want to build links between research and practice and to ensure that the School's research has business and societal impact.
Enjoy reading, and your feedback and input are always welcome!
