Results 211 to 220 of about 14,133 (250)

Corporate Diversification and Managerial Overconfidence

SSRN Electronic Journal, 2011
This study investigates the role of managerial overconfidence in the context of corporate diversification decisions. First, we find that overconfident managers are more likely to manage diversified than focused firms. Second, we find that the diversification discount is concentrated exclusively in companies managed by overconfident managers.
Panayiotis C. Andreou, John A. Doukas, Christodoulos Louca   +2 more
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Managerial overconfidence and corporate takeovers

International Journal of Managerial Finance, 2006
PurposeThe purpose of this paper is to model the announcement returns of merging firms based on managerial overconfidence about merger synergy.Design/methodology/approachThe paper applies continuous‐time real options techniques and game theoretic concepts.
Hongbo Pan, Xinping Xia, Minggui Yu
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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, Shiyang Huang, Vikram Nanda, Steven Chong Xiao   +3 more
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Managerial overconfidence and firm profitability

Asia-Pacific Journal of Accounting & Economics, 2019
This study examines how Chief Executive Officer (CEO) overconfidence affects profitability. Using United States data from 1992 to 2010, we find that firms with overconfident CEOs have a greater ret...
Hyun Ah Kim, Seung Uk Choi, Wooseok Choi
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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
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Managerial Overconfidence and Deferred Tax Assets

Korean Accounting Information Association, 2023
[Purpose] In this study, we examine how managerial overconfidence can influence the deferred tax assets reported in corporate financial statements. [Methodology] Using a sample of 5,208 firm－year observations listed in Korea from 2012 to 2020, we examine the effect of managerial overconfidence on deferred tax assets. Based on prior studies, we use and
Maria A. Leach-López, Woo-Seok Choi, Eun-Suh Lee, In-Young Baik   +3 more
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Managerial Overconfidence and Bank Bailouts

Journal of Economic Behavior & Organization, 2020
Abstract Empirical evidence suggests that managerial overconfidence and government guarantees contribute substantially to excessive risk-taking in the banking industry. This paper incorporates managerial overconfidence and limited bank liability into a principal-agent model, where the bank manager unobservably chooses the level of risk.
Daniel Gietl, Bernhard Kassner
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Managerial Overconfidence and Cost Stickiness

SSRN Electronic Journal, 2013
We propose managerial overconfidence as a behavioral explanation for SG&A cost stickiness. Building on the psychology literature, we predict that overconfident managers are more likely to overestimate future demand and therefore less likely to cut SG&A costs when sales decline.
Clara Xiaoling Chen, Timo Gores, Julia Nasev   +2 more
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Managerial overconfidence, CSR and firm value

Asia-Pacific Journal of Accounting & Economics, 2020
The purpose of our study is to explore the relationship among managerial overconfidence, CSR and firm value. Nonlinear regression and OLS regression are used to test the hypotheses.
Yu Gao, Kil-Seok Han
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Managerial Compensation Contracts and Overconfidence

SSRN Electronic Journal, 2002
In this paper we analyze how overconfidence affects the principal-agent relationship when both the principal and the agent are assumed to be overconfident with respect to the quality of a common signal on the future state of nature. We study the impact of that psychological bias on both the compensation contract which the principal offers to the agent ...
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