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Measuring CEO hubris through the hubris quotient: implications for corporate governance in an emerging market

Jagannath Sharma Nistala et al.

International Journal of Corporate Governance2026https://doi.org/10.1504/ijcg.2026.152097article
ABDC B
Weight
0.50

Abstract

This study develops the hubris quotient (HQ), a governance-proximate index that captures the behavioural and structural manifestations of CEO overconfidence, distinguishing it from the enduring personality trait of narcissism. Analysing Indian listed firms, we examine their asymmetric effects on performance. Addressing endogeneity with Arellano-Bond GMM estimators, we find a significant duality: HQ is positively associated with short-term ROA but negatively associated with Tobin's Q. This finding indicates that while hubris may boost profitability through assertive action, it concurrently imposes a market valuation penalty, eroding investor confidence. Robustness checks, including factor analysis, support these findings. The HQ provides a transparent tool for calibrating governance to strike a balance between entrepreneurial initiative and sustainable long-term value.

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https://doi.org/https://doi.org/10.1504/ijcg.2026.152097

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@article{jagannath2026,
  title        = {{Measuring CEO hubris through the hubris quotient: implications for corporate governance in an emerging market}},
  author       = {Jagannath Sharma Nistala et al.},
  journal      = {International Journal of Corporate Governance},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1504/ijcg.2026.152097},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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