CEOs with an over-sized ego are more likely to commit fraud. Ok, so where did that oversized ego come from? Hello?
“The biggest risk factor for fraud is a CEO with a truly oversized ego.”
So found an academic review of 15 Canadian corporate fraud cases between 1995 and 2005, which pointed out that a list of common warning signs of potential fraud is missing this most important item, which includes being “lauded by the media or by analysts.” According to Janet McFarland in Toronto’s The Globe and Mall, Michel Magnan, one of the report’s authors, argues that “generous doses of external praise can lead an egotistical executive to [result in] an exaggerated sense of self-confidence that leads CEOs to believe they can do whatever they want and get away with it.” Magnan, a business professor at Concordia University, seemed surprised that ...
