Self-attribution of overconfident CEOs and asymmetric investment-cash flow sensitivity
- 주제(키워드) Investment-cash flow sensitivity , Overconfidence , Self-attribution bias
- 주제(기타) Business, Finance; Economics
- 설명문(일반) [Choi, Paul Moon Sub] Ewha Womans Univ, Coll Business Adm, 52 Ewhayeodae Gil, Seoul 03760, South Korea; [Chung, Chune Young] Chung Ang Univ, Sch Business Adm, 84 Heukseok Ro, Seoul 06974, South Korea; [Liu, Chang] Hawaii Pacific Univ, Coll Business, 900 Ft St Mall,Suite 600, Honolulu, HI 96813 USA
- 등재 SSCI, SCOPUS
- 발행기관 ELSEVIER SCIENCE INC
- 발행년도 2018
- URI http://www.dcollection.net/handler/ewha/000000156468
- 본문언어 영어
- Published As http://dx.doi.org/10.1016/j.najef.2017.10.008
초록/요약
In this paper, we examine whether overconfidence coupled with a self-attribution bias affects the investment decisions of top corporate managers. First, overconfidence of chief executive officers appears to lead to the downward rigidity of investment-cash flow sensitivity. Additionally, overconfidence intensified by managerial self-attribution exacerbates the stickiness of investment-cash flow sensitivity. These results hold in both financially unconstrained and constrained firms with stronger results in the former. Overall, our findings are in line with the literature that lends support to the excessive investment commitment of overconfident managers.
more