Managers’ Dark Triad personality traits and earnings management practices in credit unions
DOI:
https://doi.org/10.17524/repec.v18i4.3466Keywords:
Credit Cooperatives, Earnings Management, Personality TraitsAbstract
Objective: This study aims to analyze the relationship between managers’ Dark Triad personality traits and earnings management practices in credit unions.
Method: This descriptive and documentary study employs a survey and quantitative approach. It presents a theoretical discussion on the Dark Triad personality traits Machiavellianism, narcissism, and psychopathy—and their influence on earnings management practices. The sample comprises 103 credit cooperative managers (restricted to one response per cooperative). Data were collected in two stages: (a) a questionnaire was administered to managers to capture their personality traits and propensity for earnings management, and (b) accounting information was gathered from entities’ reports and financial statements covering the period from the first half of 2015 to the second half of 2021. Earnings management practices were assessed using specific accruals. Descriptive statistics, multiple linear regression, and logistic regression analyses were conducted using Stata.
Results and Contributions: The findings reveal that credit unions engage in earnings management practices and that managers with Dark Triad personality traits exhibit a higher propensity to manage earnings. This underscores the importance of considering personality traits when recruiting and selecting professionals for management positions, as these traits can influence attitudes and behaviors that may not align with organizational objectives. These insights are particularly relevant for members, credit cooperatives, regulatory bodies, analysts, auditors, statutory boards, and society at large, as they demonstrate the impact of individual personality traits on accounting decisions and organizational outcomes.
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