This study explores which personality traits influence how people interpret reporting rules and engage in earnings management behavior.
Three traits were analyzed:
- Narcissism: high self-confidence, a sense of superiority, and overestimating one’s cognitive abilities.
- Impulsiveness: lack of careful deliberation, little long-term planning, and acting in the moment.
- Construal mindset: abstract versus concrete thinking; goal- versus rule-orientation.
That narcissism matters is not surprising — but impulsiveness and abstract thinking are particularly interesting. The combination of those two seems to lead to a broader interpretation of rules than seen in people with less of these traits.
👉 What about your own personality traits — and those of your colleagues?