CEO Overconfidence and Management Forecasting
By Paul Hribar, Holly I. Yang. 2016
508 citations recorded by the source corpus.
This paper examines how overconfidence affects the properties of management forecasts. Using both the “over†optimism†and “miscalibration†dimensions of overconfidence to generate our predictions, we examine three research questions. First, we examine whether overconfidence increases the likelihood of issuing a forecast. Second, we examine whether overconfidence increases the amount of optimism in management forecasts. Third, we examine whether overconfidence increases the precision of the forecast. Using both options†and press†based measures to proxy for individual overconfidence, we find support for all three research questions.
Subfields: Accounting, Finance
View Paper: https://www.semanticscholar.org/paper/fb8c3e7c419ba41a56e473ef076eefa0ef2b9e79
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Citations in the corpus
- CEO Optimism and Incentive Compensation (2014, result): “This intuition is consistent with the findings of Hribar and Yang (2013), who provide evidence that firms run by CEOs who are described as being optimistic in the financial press are indeed more likely to issue forecasts that”
- The influence of individual executives on corporate financial reporting: A review and outlook from the perspective of upper echelons theory (2016, background): “Further examples include CEO sentiments in press citations (Hribar & Yang, 2016) as a proxy for overcon fi dence, which helps to mitigate endogeneity concerns of stock-option-based metrics.”
- How CEO hubris affects corporate social (Ir)responsibility (2015, unknown): “In additional analysis we followed Hribar and Yang (2013) and coded the hubris of CEOs with no media coverage as zero (as it is reasonable to assume that those CEOs are not overly confident).”
- CEO Overconfidence and Stock Price Crash Risk (2016, unknown): “2012; Malmendier and Tate 2008; Roll 1986), more optimistic earnings forecasts (Hilary and Hsu 2011; Hribar and Yang 2014), a higher incidence of accounting fraud and lower accounting conservatism (Ahmed and Duellman 2013; Schrand and Zechman 2012), a higher level of shortterm debt (Graham et al.”
- CEO overconfidence and the value of corporate cash holdings (2019, unknown): “(2012)), earnings management forecasts (Hribar and Yang (2015)), financing”