Financial Contracting with Optimistic Entrepreneurs

By A. Landier, David Thesmar. 2009

454 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/41670f287d0498c4bd61b0c94e9ead97cc0c9169

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Citations in the corpus

Does innovativeness reduce startup survival rates (2015, background): “…over-optimism (for a recent summary of this behavioral bias, see Åstebro et al., 2014): A linear combination of the industry failure rate and an entrepreneur's self-assessment of his venture's failure likelihood can be considered a measure of entrepreneurial optimism (Landier and Thesmar, 2009).”
With a Little Help from My (Random) Friends: Success and Failure in Post-Business School Entrepreneurship (2013, unknown): “An emerging literature on “behavioral entrepreneurship” finds that individuals tend to pursue new ventures even if the expected returns are predictably meager (Camerer and Lovallo 1999; de Meza and Southey 1996; Arabsheibani et al. 2000; Landier and Thesmar 2009).”
Do serial entrepreneurs run successively better-performing businesses? (2013, background): “As a consequence, many entrepreneurs experience poor performance in their initial ventures (Landier and Thesmar, 2009).”
Incentivizing Calculated Risk-Taking: Evidence from an Experiment with Commercial Bank Loan Officers (2012, unknown): “Among the traits and dispositions that repeatedly appear as good predictors are biological determinants, such as IQ, gender, and age (see, for example, Djankov et al. (2007), Landier and Thesmar (2009)).”
Interpersonal Authority in a Theory of the Firm (This paper is currently being revised) (2007, background): “Finally, there is also a nice way to capture the notion of obedience as “abdication of choice” in this model: if observing your own belief would require some infinitesimal effort or cost, then employees in fi would (in equilibrium) not bother to learn their own beliefs and blindly follow orders.”
Overconfidence, Compensation Contracts, and Capital Budgeting (2011, methodology): “In what follows, we describe the project, the information technology used to assess the project’s value, the compensation contract offered by the firm, and the manager’s preferences and overconfidence.”
The Desire to Acquire and IPO Long-Run Underperformance (2012, background): “For example, Baker, Ruback, and Wurgler (2007) note that, based on their review of previous studies, entrepreneurs of start-up firms seem to be particularly prone to overconfidence (see also Landier and Thesmar (2009), Camerer and Lovallo (1999), and Cooper, Woo, and Dunkelberg (1988)).”
CEO Optimism and Incentive Compensation (2014, unknown): “Landier and Thesmar (2009) show how entrepreneurial optimism affects the choice of debt maturity, and Malmendier and Tate (2005a, 2005b, 2008) and Malmendier, Tate, and Yan (2011) provide evidence that overconfident CEOs display higher investment-cash flow sensitivities, are more acquisitive, and ar”
Do Managers Overreact to Salient Risks? Evidence from Hurricane Strikes (2017, background): “The additional cash leads to a lower increase in market capitalization relative to control firms, suggesting that markets see it as wasteful.”
Industry and Startup Experience on Entrepreneur Forecast Performance in New Firms (2014, unknown): “22 previous research in forecast performance has not considered these self-selection effects (Landier and Thesmar 2009), I report the findings both using only the surviving firms and including exited firms.”
Risk Tolerance and Entrepreneurship (2013, background): “Odean (1998) and Barber & Odean (2000) suggest that excess trading is driven by overconfidence, a trait that is likely correlated with entrepreneurial entry (e.g., Landier & Thesmar, 2009).”
The entrepreneurial earnings puzzle: Mismeasurement or real? (2014, background): “(Arabsheibani et al., 2000; Åstebro et al., 2007; Åstebro et al., 2012b; Koellinger et al., 2007; Landier and Thesmar, 2009; Puri and Robinson, 2007; Tergiman, 2010).”
Housing Collateral and Entrepreneurship (2013, unknown): “We construct this first dataset from the 1998 wave of the SINE survey (see Landier and Thesmar (2009) for a thorough description of this data source).”