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The purpose of this study is to examine the moderating effect of an exogenous corporate governance shock that curbs Chief Executive Officers’ (CEOs) power on the relationship between CEO narcissism and earnings management practices.

The authors performed a quasi-experiment using a differences-in-differences approach to examine Brazil’s duality split regulatory change on 101 Brazilian public firms during the period 2010–2022.

The main findings indicate that the introduction of duality split curtails the positive influence of CEO narcissism on earnings management, suggesting that this corporate governance regulation may act as a complementary corporate governance mechanism in mitigating the negative consequences of powerful narcissistic CEOs. Further robustness checks indicate that the results remain consistent after using entropy balancing and alternative measures of CEO narcissism.

In emerging markets, where governance systems are frequently perceived as less than optimal, policymakers and regulatory authorities can draw insights from this enforcement to shape governance systems, reducing CEO power and, consequently, improving the quality of financial reporting.

To the best of the authors’ knowledge, this is the first study to examine whether a duality split mitigates the influence of CEO narcissism on earnings management. Thus, this study contributes to the corporate governance literature that calls for research on the effectiveness of external corporate governance mechanisms in emerging markets as well as the CEO narcissism literature that calls for research on moderating factors that could curtail negative consequences of narcissistic CEO behavior.

This research aims to identify Brazil's socioeconomic vulnerability to wicked multi-problems arising from coronavirus disease 2019 (COVID-19) (2019–2020), from the most extensive (∼ 3,000 km) oil spill in tropical oceans (2019/2020) and from the highest rate of wildfires in the last decade.

To this end, the authors measured the socioeconomic vulnerabilities of the 27 Brazilian states to these multi-problems (COVID-19 + Oil Spill + wildFire), considering the effects of these events individually and together. In addition, the authors calculated the vulnerability indices using two variables: production value and number of jobs created by an economic activity.

Results show the states of São Paulo, Minas Gerais, and Rio de Janeiro as the most susceptible, with a potential loss of 74.2% in production value and 47% in active employment relationships, caused by these overlapping events in time. The results also demonstrate that the country has failed in the coordination and management of these events (separately and jointly), showing difficulties especially in the stages of immediate response and recovery.

Regarding its contributions, this paper innovates by establishing an unprecedented overlap of wicked problems, linking this concept to the analysis of socioeconomic vulnerability of the affected communities, through a model that applies to other regions worldwide.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-09-2021-0536