Recruiting Dark Personalities for Earnings Management

Prior research indicates that managers’ dark personality traits increase their tendency to engage in disruptive and unethical organizational behaviors including accounting earnings management. Other suggests the prevalence of personalities management may represent an accidental byproduct selecting managers with accompanying desirable attributes fit stereotype a “strong leader.” Our paper posits organizations hire some who have because willingness push ethical boundaries aligns objectives, particularly context where considerations are especially important. Using several validation studies experiments, we find experienced executives recruiting professionals favor hiring candidate into position over otherwise better-qualified when organization faces pressure manage earnings. results help illuminate why individuals effectively compete for high-level positions.