CEO Overconfidence and Stock Price Crash Risk

被引：489

作者：

Kim, Jeong-Bon ^{[1
]}

Wang, Zheng ^{[2
]}

Zhang, Liandong ^{[2
]}

机构：

[1] Univ Waterloo, Waterloo, ON, Canada

[2] City Univ Hong Kong, Hong Kong, Hong Kong, Peoples R China

来源：

CONTEMPORARY ACCOUNTING RESEARCH | 2016年 / 33卷 / 04期

关键词：

CORPORATE GOVERNANCE; MANAGERS; FIRM; CONSERVATISM; EARNINGS; POLICIES; STYLE;

D O I：

10.1111/1911-3846.12217

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

This study examines the association between chief executive officer (CEO) overconfidence and future stock price crash risk. Overconfident managers overestimate the returns to their investment projects and misperceive negative net present value (NPV) projects as value creating. They also tend to ignore or explain away privately observed negative feedback. As a result, negative NPV projects are kept for too long and their bad performance accumulates, which can lead to stock price crashes. Using a large sample of firms for the period 1993-2010, we find that firms with overconfident CEOs have higher stock price crash risk than firms with nonoverconfident CEOs. The impact of managerial overconfidence on crash risk is more pronounced when the CEO is more dominant in the top management team and when there are greater differences of opinion among investors. Finally, it appears that the effect of CEO overconfidence on crash risk is less pronounced for firms with more conservative accounting policies.

引用

页码：1720 / 1749

页数：30

共 61 条

[1] Powerful CEOs and their impact on corporate performance [J].

Adams, RB ;

Almeida, H ;

Ferreira, D .

REVIEW OF FINANCIAL STUDIES, 2005, 18 (04) :1403-1432

[2] Managerial Overconfidence and Accounting Conservatism [J].

Ahmed, Anwer S. ;

Duellman, Scott .

JOURNAL OF ACCOUNTING RESEARCH, 2013, 51 (01) :1-30

[3]

[Anonymous], 2014, WORKING PAPER

[4]

[Anonymous], 2005, The self in social judgment, DOI DOI 10.4324/9780203943250-11

[5]

[Anonymous], 2003, Accounting Horizons, DOI DOI 10.2308/ACCH.2003.17.3.207

[6]

Baker M., 2012, HDB EC FINANCE, P1

[7]

Baker Malcolm., 2007, HDB CORPORATE FINANC, DOI DOI 10.1016/B978-0-444-53265-7.50018-4

[8]

Barberis N., 2003, HDB EC FINANCE, V1B, P1053, DOI DOI 10.1515/9781400829125-004

[9]

Barberis N., 2011, WORKING PAPER

[10] The conservatism principle and the asymmetric timeliness of earnings [J].

Basu, S .

JOURNAL OF ACCOUNTING & ECONOMICS, 1997, 24 (01) :3-37

← 1 2 3 4 5 6 7 →