Are Overconfident CEOs Better Innovators?
AbstractUsing options- and press-based proxies for CEO overconfidence (Malmendier and Tate 2005a, 2005b, 2008), we find that over the 1993-2003 period, firms with overconfident CEOs have greater return volatility, invest more in innovation, obtain more patents and patent citations, and achieve greater innovative success for given research and development (R&D) expenditure. Overconfident managers only achieve greater innovation than non-overconfident managers in innovative industries. Overconfidence is not associated with lower sales, ROA, or Q.
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Bibliographic InfoArticle provided by American Finance Association in its journal Journal of Finance.
Volume (Year): 67 (2012)
Issue (Month): 4 (08)
Other versions of this item:
- M52 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
- G30 - Financial Economics - - Corporate Finance and Governance - - - General
- M40 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - General
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Overconfident CEOs are better
by Economic Logician in Economic Logic on 2010-06-16 14:00:00
- Weekly Wisdom Roundup # 83- The Smartest Linkfest On The Web
by Miguel in Simoleon Sense on 2010-06-20 19:32:27
by himaginary in himaginaryの日記 on 2012-08-02 07:00:00
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