Results 181 to 190 of about 646 (230)

Managerial Overconfidence and Market Feedback Effects

Management Science, 2023
We show that managerial learning from stock prices can lead to feedback loop vulnerability: corrective actions based on perceived negative market signals reduce the sensitivity of asset payoffs to stock market information. Less sensitivity discourages liquidity provision and increases the price impact of liquidity shocks.
Suman Banerjee   +3 more
openaire   +2 more sources

Managerial overconfidence and corporate resilience

Finance Research Letters
Ximeng Zhang, Deqing Liu, Jie Chen
exaly   +2 more sources

Managerial Overconfidence and Dividend Stickiness

Journal of Accounting, Auditing & Finance, 2023
In this study, we examine whether overconfident CEOs strive to smooth dividends. Our findings show overconfident CEOs increase dividends more as earnings increase and decrease dividends less as earnings decline, resulting in downward dividend stickiness. This asymmetric dividend payout is consistent with the selective self-attribution bias. Furthermore,
Jui-Chia Lin, Min-Teh Yu
openaire   +1 more source

Endogenous overconfidence in managerial forecasts

Journal of Accounting and Economics, 2011
Abstract We examine whether attribution bias leads managers who have experienced short-term forecasting success to become overconfident in their ability to forecast future earnings. Importantly, this form of overconfidence is endogenous and dynamic. We also examine the effect of this cognitive bias on the managerial credibility.
Hilary, Gilles, Hsu, Charles
openaire   +2 more sources

Dividends and Managerial Overconfidence

SSRN Electronic Journal, 2013
We analyze the direct impacts of managerial overconfidence upon the dividend decision and demonstrate that the dividend levels and speeds of adjustment to target levels can increase when managers exhibit overconfidence. However, we demonstrate that the directional impact upon dividend levels will depend upon the nature of the managerial overconfidence.
Balasingham Balachandran   +2 more
openaire   +1 more source

Managerial Overconfidence and Covenant Protection

SSRN Electronic Journal, 2016
This paper examines how managerial overconfidence affects covenant usage. We find that creditors significantly use more covenants, increase covenant intensity, and use different types of covenants such as performance-based covenants and capital-based covenants to curb the default risk emanating from managerial overconfidence. Besides, creditors tighten
Jan P. Voon, Chen Lin, Yiu C Ma
openaire   +1 more source

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