Managerial Overconfidence and Corporate Policies

By Itzhak Ben-David, John R. Graham, Campbell R. Harvey. 2007

375 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/ec45ef3bdc8f714acfb7b731f84d23b43e9f192a

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Citations in the corpus

CEO Overconfidence and Corporate Debt Maturity (2016, neutral): “(2005), (2008) and our study is consistent with the evidence from Landier and Thesmar (2009) and Ben-David et al.’s (2007) finding that optimistic expectation errors made by”
Overpriced Shares, Ill-Advised Acquisitions, and Goodwill Impairment (2011, neutral): “Either managers follow a short-term stock price enhancement strategy (Stein 1996) and pay for the acquisition more than the long-term expected synergies, 22 or in their optimism and overconfidence (e.g., Ben-David et al. 2007), they overstate the synergies.”
What Doesn't Kill You Will Only Make You More Risk-Loving: Early-Life Disasters and CEO Behavior (2017, background): “I. Motivation Managers’ ability to assess and cope with risk has pervasive effects on corporate decisionmaking (Ben-David, Graham, and Harvey (2007)) and CEOs are arguably among the most influential corporate decision-makers (Graham, Harvey, and Puri (2012, 2013)).”
CEO Overconfidence and Dividend Policy (2013, neutral): “So, on the one hand, an overconfident CEO may lower dividends if he or she perceives higher investment needs (Ben-David et al., 2007); on the other hand, the CEO may increase dividends if he or she expects higher cash flows from current investment (Wu and Liu, 2011).”
Overconfidence in Psychology and Finance - An Interdisciplinary Literature Review (2008, positive): “Ben-David et al. (2007) also find empirical support for corporate policy assumptions of Heaton (2002) and Malmendier and Tate (2005), as firms of overconfident CFOs are found to behave as if they were undervalued by the market.”
Executive Overconfidence and the Slippery Slope to Financial Misreporting (2012, positive): “25 For example, consistent with evidence provided by Ben-David et al. (2007) and Malmendier and Tate (2005), overconfident managers are more likely to overestimate the returns to their investment projects.”
Managerial Overconfidence and Corporate Risk Management (2015, neutral): “Existing studies fall under two categories: surveys, as in Ben-David, Graham, and Harvey (2007); and cross-sectional studies, as in Malmendier and Tate (2005).”
Corporate Boards and the Leverage and Debt Maturity Choices (2007, neutral): “These variables are defined in Table 1 and are motivated by the empirical findings in Berger et al. (1997), Barclay et al.”