IDEAS home Printed from https://ideas.repec.org/a/eee/bracre/v56y2024i6s0890838924001902.html
   My bibliography  Save this article

Capitalised development costs and future cash flows: The effect of CEO overconfidence and board gender diversity

Author

Listed:
  • Almaghrabi, Khadija S.
  • Slack, Richard
  • Tsalavoutas, Ioannis
  • Tsoligkas, Fanis

Abstract

Capitalisation of development costs mandated under IAS 38 is an important accounting issue conveying a signal to users of accounting information regarding future economic benefits. Using a longitudinal sample of UK firms, firstly, we examine the adverse effect of CEO overconfidence levels on the association between capitalised development costs and future economic benefits, proxied by cash flows. Secondly, we examine the moderating influence of board gender diversity on this association. We find that the association between capitalised development costs and future cash flows, while positive, is significantly weaker for firms with higher levels of CEO overconfidence, implying that the signalling effect of capitalisation is diluted. Moreover, our results show that board gender diversity significantly moderates the managerial bias associated with high overconfidence levels, helping to restore the neutrality of accounting and the strength of signalling with regards to future economic benefits.

Suggested Citation

  • Almaghrabi, Khadija S. & Slack, Richard & Tsalavoutas, Ioannis & Tsoligkas, Fanis, 2024. "Capitalised development costs and future cash flows: The effect of CEO overconfidence and board gender diversity," The British Accounting Review, Elsevier, vol. 56(6).
  • Handle: RePEc:eee:bracre:v:56:y:2024:i:6:s0890838924001902
    DOI: 10.1016/j.bar.2024.101426
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0890838924001902
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.bar.2024.101426?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. repec:eme:aaaj00:09513570610679100 is not listed on IDEAS
    2. Anwer S. Ahmed & Scott Duellman, 2013. "Managerial Overconfidence and Accounting Conservatism," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 51(1), pages 1-30, March.
    3. Nikolaev, V. & van Lent, L.A.G.M., 2005. "The Endogeneity Bias in the Relation Between Cost-of-Debt Capital and Corporate Disclosure Policy," Discussion Paper 2005-67, Tilburg University, Center for Economic Research.
    4. Niamh M. Brennan & John P. Conroy, 2013. "Executive hubris: the case of a bank CEO," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 26(2), pages 172-195, February.
    5. Thomas Schleicher & Martin Walker, 2010. "Bias in the tone of forward‐looking narratives," Accounting and Business Research, Taylor & Francis Journals, vol. 40(4), pages 371-390.
    6. repec:eme:aaaj00:09513571311303701 is not listed on IDEAS
    7. Eli Amir & Yanling Guan & Gilad Livne, 2007. "The Association of R&D and Capital Expenditures with Subsequent Earnings Variability," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 34(1‐2), pages 222-246, January.
    8. Renée B. Adams & Patricia Funk, 2012. "Beyond the Glass Ceiling: Does Gender Matter?," Management Science, INFORMS, vol. 58(2), pages 219-235, February.
    9. Itzhak Ben-David & John R. Graham, 2013. "Managerial Miscalibration," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(4), pages 1547-1584.
    10. Ulrike Malmendier & Geoffrey Tate, 2005. "CEO Overconfidence and Corporate Investment," Journal of Finance, American Finance Association, vol. 60(6), pages 2661-2700, December.
    11. Malmendier, Ulrike & Tate, Geoffrey, 2008. "Who makes acquisitions? CEO overconfidence and the market's reaction," Journal of Financial Economics, Elsevier, vol. 89(1), pages 20-43, July.
    12. Dennis Oswald & Paul Zarowin, 2007. "Capitalization of R&D and the Informativeness of Stock Prices," European Accounting Review, Taylor & Francis Journals, vol. 16(4), pages 703-726.
    13. Nikolaev, V. & van Lent, L.A.G.M., 2005. "The Endogeneity Bias in the Relation Between Cost-of-Debt Capital and Corporate Disclosure Policy," Other publications TiSEM 5960a342-0adc-4f85-bf87-2, Tilburg University, School of Economics and Management.
    14. García, Diego & Hu, Xiaowen & Rohrer, Maximilian, 2023. "The colour of finance words," Journal of Financial Economics, Elsevier, vol. 147(3), pages 525-549.
    15. Ulrike Malmendier & Geoffrey Tate, 2015. "Behavioral CEOs: The Role of Managerial Overconfidence," Journal of Economic Perspectives, American Economic Association, vol. 29(4), pages 37-60, Fall.
    16. Gull, Ammar Ali & Nekhili, Mehdi & Nagati, Haithem & Chtioui, Tawhid, 2018. "Beyond gender diversity: How specific attributes of female directors affect earnings management," The British Accounting Review, Elsevier, vol. 50(3), pages 255-274.
    17. Mark Britten-Jones & Anthony Neuberger & Ingmar Nolte, 2011. "Improved Inference in Regression with Overlapping Observations," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 38(5-6), pages 657-683, June.
    18. Graham, John R. & Harvey, Campbell R. & Puri, Manju, 2013. "Managerial attitudes and corporate actions," Journal of Financial Economics, Elsevier, vol. 109(1), pages 103-121.
    19. Asher Curtis & Sarah McVay & Sara Toynbee, 2020. "The changing implications of research and development expenditures for future profitability," Review of Accounting Studies, Springer, vol. 25(2), pages 405-437, June.
    20. Farrell, Kathleen A. & Hersch, Philip L., 2005. "Additions to corporate boards: the effect of gender," Journal of Corporate Finance, Elsevier, vol. 11(1-2), pages 85-106, March.
    21. McCarthy, Scott & Oliver, Barry & Song, Sizhe, 2017. "Corporate social responsibility and CEO confidence," Journal of Banking & Finance, Elsevier, vol. 75(C), pages 280-291.
    22. Alberto Galasso & Timothy S. Simcoe, 2011. "CEO Overconfidence and Innovation," Management Science, INFORMS, vol. 57(8), pages 1469-1484, August.
    23. Andrew Vivian & Bin Xu, 2018. "Time-varying managerial overconfidence and pecking order preference," Review of Quantitative Finance and Accounting, Springer, vol. 50(3), pages 799-835, April.
    24. Mark Clatworthy & Michael Jones, 2003. "Financial reporting of good news and bad news: evidence from accounting narratives," Accounting and Business Research, Taylor & Francis Journals, vol. 33(3), pages 171-185.
    25. Stanley M. Atkinson & Samantha Boyce Baird & Melissa B. Frye, 2003. "Do Female Mutual Fund Managers Manage Differently?," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 26(1), pages 1-18, March.
    26. James Heckman, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    27. Baruch Lev, 2019. "Ending the Accounting-for-Intangibles Status Quo," European Accounting Review, Taylor & Francis Journals, vol. 28(4), pages 713-736, August.
    28. Kang Sung Hur & Dong Hyun Kim & Joon Hei Cheung, 2019. "Managerial Overconfidence and Cost Behavior of R&D Expenditures," Sustainability, MDPI, vol. 11(18), pages 1-13, September.
    29. Bill Francis & Iftekhar Hasan & Jong Chool Park & Qiang Wu, 2015. "Gender Differences in Financial Reporting Decision Making: Evidence from Accounting Conservatism," Contemporary Accounting Research, John Wiley & Sons, vol. 32(3), pages 1285-1318, September.
    30. J B Heaton, 2002. "Managerial Optimism and Corporate Finance," Financial Management, Financial Management Association, vol. 31(2), Summer.
    31. David Hirshleifer & Angie Low & Siew Hong Teoh, 2012. "Are Overconfident CEOs Better Innovators?," Journal of Finance, American Finance Association, vol. 67(4), pages 1457-1498, August.
    32. Berger, Allen N. & Kick, Thomas & Schaeck, Klaus, 2014. "Executive board composition and bank risk taking," Journal of Corporate Finance, Elsevier, vol. 28(C), pages 48-65.
    33. Joseph V. Carcello & Terry L. Neal & Zoe†Vonna Palmrose & Susan Scholz, 2011. "CEO Involvement in Selecting Board Members, Audit Committee Effectiveness, and Restatements," Contemporary Accounting Research, John Wiley & Sons, vol. 28(2), pages 396-430, June.
    34. Chen, Sheng-Syan & Ho, Keng-Yu & Ho, Po-Hsin & Nie, Wei-Ying, 2022. "CEO overconfidence and bondholder wealth effects: Evidence from mergers and acquisitions," Journal of Corporate Finance, Elsevier, vol. 77(C).
    35. Ahmed, Kamran & Falk, Haim, 2006. "The value relevance of management's research and development reporting choice: Evidence from Australia," Journal of Accounting and Public Policy, Elsevier, vol. 25(3), pages 231-264.
    36. Niamh M. Brennan & John P. Conroy, 2013. "Executive hubris: the case of a bank CEO," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 26(2), pages 172-195, February.
    37. Paul Hribar & Holly Yang, 2016. "CEO Overconfidence and Management Forecasting," Contemporary Accounting Research, John Wiley & Sons, vol. 33(1), pages 204-227, March.
    38. Cazavan-Jeny, Anne & Jeanjean, Thomas & Joos, Peter, 2011. "Accounting choice and future performance: The case of R&D accounting in France," Journal of Accounting and Public Policy, Elsevier, vol. 30(2), pages 145-165, March.
    39. Ali Ataullah & Andrew Vivian & Bin Xu, 2018. "Optimistic Disclosure Tone and Conservative Debt Policy," Abacus, Accounting Foundation, University of Sydney, vol. 54(4), pages 445-484, December.
    40. Nelson, Charles R & Kim, Myung J, 1993. "Predictable Stock Returns: The Role of Small Sample Bias," Journal of Finance, American Finance Association, vol. 48(2), pages 641-661, June.
    41. Faleye, Olubunmi & Kovacs, Tunde & Venkateswaran, Anand, 2014. "Do Better-Connected CEOs Innovate More?," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 49(5-6), pages 1201-1225, December.
    42. Chen, Jie & Leung, Woon Sau & Song, Wei & Goergen, Marc, 2019. "Why female board representation matters: The role of female directors in reducing male CEO overconfidence," Journal of Empirical Finance, Elsevier, vol. 53(C), pages 70-90.
    43. Ester Chen & Ilanit Gavious & Baruch Lev, 2017. "The positive externalities of IFRS R&D capitalization: enhanced voluntary disclosure," Review of Accounting Studies, Springer, vol. 22(2), pages 677-714, June.
    44. Leventis, Stergios & Tsalavoutas, Ioannis & Tsoligkas, Fanis, 2024. "Informal institutions in accounting research: A structured literature review," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 55(C).
    45. Valeri Nikolaev & Laurence van Lent, 2005. "The endogeneity bias in the relation between cost-of-debt capital and corporate disclosure policy," European Accounting Review, Taylor & Francis Journals, vol. 14(4), pages 677-724.
    46. Erlend Kvaal & Christopher Nobes, 2012. "IFRS Policy Changes and the Continuation of National Patterns of IFRS Practice," European Accounting Review, Taylor & Francis Journals, vol. 21(2), pages 343-371, August.
    47. repec:hal:journl:hal-02312045 is not listed on IDEAS
    48. Dargenidou, Christina & Jackson, Richard H.G. & Tsalavoutas, Ioannis & Tsoligkas, Fanis, 2021. "Capitalisation of R&D and the informativeness of stock prices: Pre- and post-IFRS evidence," The British Accounting Review, Elsevier, vol. 53(4).
    49. Andreou, Panayiotis C. & Cooper, Ilan & de Olalla Lopez, Ignacio Garcia & Louca, Christodoulos, 2018. "Managerial overconfidence and the buyback anomaly," Journal of Empirical Finance, Elsevier, vol. 49(C), pages 142-156.
    50. Tim Loughran & Bill Mcdonald, 2011. "When Is a Liability Not a Liability? Textual Analysis, Dictionaries, and 10‐Ks," Journal of Finance, American Finance Association, vol. 66(1), pages 35-65, February.
    51. Richard Barker & Stephen Penman & Thomas J. Linsmeier & Stephen Cooper, 2020. "Moving the Conceptual Framework Forward: Accounting for Uncertainty," Contemporary Accounting Research, John Wiley & Sons, vol. 37(1), pages 322-357, March.
    52. Bin Srinidhi & Ferdinand A. Gul & Judy Tsui, 2011. "Female Directors and Earnings Quality," Contemporary Accounting Research, John Wiley & Sons, vol. 28(5), pages 1610-1644, December.
    53. Kevin Campbell & Antonio Mínguez-Vera, 2008. "Gender Diversity in the Boardroom and Firm Financial Performance," Journal of Business Ethics, Springer, vol. 83(3), pages 435-451, December.
    54. Andi Duqi & Aziz Jaafar & Giuseppe Torluccio, 2015. "Mispricing and risk of R&D investment in European firms," The European Journal of Finance, Taylor & Francis Journals, vol. 21(5), pages 444-465, March.
    55. F. Tsoligkas & I. Tsalavoutas, 2011. "Value relevance of R&D in the UK after IFRS mandatory implementation," Applied Financial Economics, Taylor & Francis Journals, vol. 21(13), pages 957-967.
    56. Anand M. Goel & Anjan V. Thakor, 2008. "Overconfidence, CEO Selection, and Corporate Governance," Journal of Finance, American Finance Association, vol. 63(6), pages 2737-2784, December.
    57. Joon Mahn Lee & Byoung‐Hyoun Hwang & Hailiang Chen, 2017. "Are founder CEOs more overconfident than professional CEOs? Evidence from S&P 1500 companies," Strategic Management Journal, Wiley Blackwell, vol. 38(3), pages 751-769, March.
    58. Beatriz Garcia Osma & Steven Young, 2009. "R&D Expenditure and Earnings Targets," European Accounting Review, Taylor & Francis Journals, vol. 18(1), pages 7-32.
    59. García Lara, Juan Manuel & García Osma, Beatriz & Mora, Araceli & Scapin, Mariano, 2017. "The monitoring role of female directors over accounting quality," Journal of Corporate Finance, Elsevier, vol. 45(C), pages 651-668.
    60. Sheng-Syan Chen & Keng-Yu Ho & Po-Hsin Ho, 2014. "CEO Overconfidence and Long-Term Performance Following R&D Increases," Financial Management, Financial Management Association International, vol. 43(2), pages 245-269, June.
    61. Tien-Shih Hsieh & Jean C. Bedard & Karla M. Johnstone, 2014. "CEO Overconfidence and Earnings Management During Shifting Regulatory Regimes," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 41(9-10), pages 1243-1268, November.
    62. Tami Dinh & Helen Kang & Wolfgang Schultze, 2016. "Capitalizing Research & Development: Signaling or Earnings Management?," European Accounting Review, Taylor & Francis Journals, vol. 25(2), pages 373-401, June.
    63. Banerjee, Suman & Humphery-Jenner, Mark & Nanda, Vikram & Tham, Mandy, 2018. "Executive Overconfidence and Securities Class Actions," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 53(6), pages 2685-2719, December.
    64. Christopher Nobes, 2013. "The continued survival of international differences under IFRS," Accounting and Business Research, Taylor & Francis Journals, vol. 43(2), pages 83-111, April.
    65. Mark DeFond & David H. Erkens & Jieying Zhang, 2017. "Do Client Characteristics Really Drive the Big N Audit Quality Effect? New Evidence from Propensity Score Matching," Management Science, INFORMS, vol. 63(11), pages 3628-3649, November.
    66. Griffin, Dale & Li, Kai & Xu, Ting, 2021. "Board Gender Diversity and Corporate Innovation: International Evidence," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 56(1), pages 123-154, February.
    67. Maria Boutchkova & Angelica Gonzalez & Brian G.M. Main & Vathunyoo Sila, 2021. "Gender diversity and the spillover effects of women on boards," Corporate Governance: An International Review, Wiley Blackwell, vol. 29(1), pages 2-21, January.
    68. Dechow, Patricia M. & Sloan, Richard G., 1991. "Executive incentives and the horizon problem : An empirical investigation," Journal of Accounting and Economics, Elsevier, vol. 14(1), pages 51-89, March.
    69. Adams, Renée B. & Ferreira, Daniel, 2009. "Women in the boardroom and their impact on governance and performance," Journal of Financial Economics, Elsevier, vol. 94(2), pages 291-309, November.
    70. Mark A. Clatworthy & Michael John Jones, 2006. "Differential patterns of textual characteristics and company performance in the chairman's statement," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 19(4), pages 493-511, July.
    71. Jin, Li & Kothari, S.P., 2008. "Effect of personal taxes on managers' decisions to sell their stock," Journal of Accounting and Economics, Elsevier, vol. 46(1), pages 23-46, September.
    72. Hilary, Gilles & Hsu, Charles & Segal, Benjamin & Wang, Rencheng, 2016. "The bright side of managerial over-optimism," Journal of Accounting and Economics, Elsevier, vol. 62(1), pages 46-64.
    73. Hersh Shefrin, 2001. "Behavioral Corporate Finance," Journal of Applied Corporate Finance, Morgan Stanley, vol. 14(3), pages 113-126, September.
    74. Schrand, Catherine M. & Zechman, Sarah L.C., 2012. "Executive overconfidence and the slippery slope to financial misreporting," Journal of Accounting and Economics, Elsevier, vol. 53(1), pages 311-329.
    75. John A. Doukas & Dimitris Petmezas, 2007. "Acquisitions, Overconfident Managers and Self‐attribution Bias," European Financial Management, European Financial Management Association, vol. 13(3), pages 531-577, June.
    76. David J. Campbell, 2000. "Legitimacy Theory or Managerial Reality Construction? Corporate Social Disclosure in Marks and Spencer Plc Corporate Reports, 1969–1997," Accounting Forum, Taylor & Francis Journals, vol. 24(1), pages 80-100, March.
    77. Shimin Chen & Xu Ni & Jamie Y. Tong, 2016. "Gender Diversity in the Boardroom and Risk Management: A Case of R&D Investment," Journal of Business Ethics, Springer, vol. 136(3), pages 599-621, July.
    78. Feng Li, 2010. "The Information Content of Forward‐Looking Statements in Corporate Filings—A Naïve Bayesian Machine Learning Approach," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 48(5), pages 1049-1102, December.
    79. Mazzi, Francesco & Slack, Richard & Tsalavoutas, Ioannis & Tsoligkas, Fanis, 2019. "Country-level corruption and accounting choice: Research & development capitalization under IFRS," The British Accounting Review, Elsevier, vol. 51(5).
    80. Maximiliano González & Alexander Guzmán & Eduardo Pablo & María Andrea Trujillo, 2020. "Does gender really matter in the boardroom? Evidence from closely held family firms," Review of Managerial Science, Springer, vol. 14(1), pages 221-267, February.
    81. Rachel Croson & Uri Gneezy, 2009. "Gender Differences in Preferences," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 448-474, June.
    82. Presley, Theresa J. & Abbott, Lawrence J., 2013. "AIA submission: CEO overconfidence and the incidence of financial restatement," Advances in accounting, Elsevier, vol. 29(1), pages 74-84.
    83. Huang, Jiekun & Kisgen, Darren J., 2013. "Gender and corporate finance: Are male executives overconfident relative to female executives?," Journal of Financial Economics, Elsevier, vol. 108(3), pages 822-839.
    84. Tsalavoutas, Ioannis & Tsoligkas, Fanis, 2021. "Uncertainty avoidance and stock price informativeness of future earnings," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 75(C).
    85. Anne Wyatt, 2008. "What financial and non‐financial information on intangibles is value‐relevant? A review of the evidence," Accounting and Business Research, Taylor & Francis Journals, vol. 38(3), pages 217-256.
    86. Andreas Kreß & Brigitte Eierle & Ioannis Tsalavoutas, 2019. "Development costs capitalization and debt financing," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 46(5-6), pages 636-685, May.
    87. Arun, Thankom Gopinath & Almahrog, Yousf Ebrahem & Ali Aribi, Zakaria, 2015. "Female directors and earnings management: Evidence from UK companies," International Review of Financial Analysis, Elsevier, vol. 39(C), pages 137-146.
    88. Levi, Maurice & Li, Kai & Zhang, Feng, 2014. "Director gender and mergers and acquisitions," Journal of Corporate Finance, Elsevier, vol. 28(C), pages 185-200.
    89. Koonce, Lisa & Seybert, Nick & Smith, James, 2011. "Causal reasoning in financial reporting and voluntary disclosure," Accounting, Organizations and Society, Elsevier, vol. 36(4), pages 209-225.
    90. Aida Sijamic Wahid, 2019. "The Effects and the Mechanisms of Board Gender Diversity: Evidence from Financial Manipulation," Journal of Business Ethics, Springer, vol. 159(3), pages 705-725, October.
    91. Itzhak Ben-David & John R. Graham & Campbell R. Harvey, 2007. "Managerial Overconfidence and Corporate Policies," NBER Working Papers 13711, National Bureau of Economic Research, Inc.
    92. Hackbarth, Dirk, 2008. "Managerial Traits and Capital Structure Decisions," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 43(4), pages 843-881, December.
    93. Chen, Jie & Leung, Woon Sau & Evans, Kevin P., 2018. "Female board representation, corporate innovation and firm performance," Journal of Empirical Finance, Elsevier, vol. 48(C), pages 236-254.
    94. Ali Ataullah & Andrew Vivian & Bin Xu, 2018. "Time-varying managerial overconfidence and corporate debt maturity structure," The European Journal of Finance, Taylor & Francis Journals, vol. 24(2), pages 157-181, January.
    95. Holger Daske & Luzi Hail & Christian Leuz & Rodrigo Verdi, 2013. "Adopting a Label: Heterogeneity in the Economic Consequences Around IAS/IFRS Adoptions," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 51(3), pages 495-547, June.
    96. Nikolaev, V. & van Lent, L.A.G.M., 2005. "The endogeneity bias in the relation between cost-of-debt capital and corporate disclosure policy," Other publications TiSEM 04869b30-e8a9-4ecf-84ae-6, Tilburg University, School of Economics and Management.
    97. Mazzi, Francesco & Slack, Richard & Tsalavoutas, Ioannis, 2018. "The effect of corruption and culture on mandatory disclosure compliance levels: Goodwill reporting in Europe," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 31(C), pages 52-73.
    98. Hoitash, Rani & Hoitash, Udi & Kurt, Ahmet C., 2016. "Do accountants make better chief financial officers?," Journal of Accounting and Economics, Elsevier, vol. 61(2), pages 414-432.
    99. Mark A. Clatworthy & Michael John Jones, 2006. "Differential patterns of textual characteristics and company performance in the chairman's statement," Accounting, Auditing & Accountability Journal, Emerald Group Publishing, vol. 19(4), pages 493-511, July.
    100. Ulrike Malmendier & Geoffrey Tate & Jon Yan, 2011. "Overconfidence and Early‐Life Experiences: The Effect of Managerial Traits on Corporate Financial Policies," Journal of Finance, American Finance Association, vol. 66(5), pages 1687-1733, October.
    101. Jingsi Leng & Aydin Ozkan & Neslihan Ozkan & Agnieszka Trzeciakiewicz, 2021. "CEO overconfidence and the probability of corporate failure: evidence from the United Kingdom," The European Journal of Finance, Taylor & Francis Journals, vol. 27(12), pages 1210-1234, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ali Ataullah & Andrew Vivian & Bin Xu, 2018. "Optimistic Disclosure Tone and Conservative Debt Policy," Abacus, Accounting Foundation, University of Sydney, vol. 54(4), pages 445-484, December.
    2. Jennifer Kunz & Lara Sonnenholzner, 2023. "Managerial overconfidence: promoter of or obstacle to organizational resilience?," Review of Managerial Science, Springer, vol. 17(1), pages 67-128, January.
    3. Tosun, Onur Kemel & El Kalak, Izidin & Hudson, Robert, 2022. "How female directors help firms to attain optimal cash holdings," International Review of Financial Analysis, Elsevier, vol. 80(C).
    4. Lin, Chih-Yung & Chen, Yehning & Ho, Po-Hsin & Yen, Ju-Fang, 2020. "CEO overconfidence and bank loan contracting," Journal of Corporate Finance, Elsevier, vol. 64(C).
    5. Bharati, Rakesh & Doellman, Thomas & Fu, Xudong, 2016. "CEO confidence and stock returns," Journal of Contemporary Accounting and Economics, Elsevier, vol. 12(1), pages 89-110.
    6. Lai, Shaojie & Li, Xiaorong & Chan, Kam C., 2021. "CEO overconfidence and labor investment efficiency," The North American Journal of Economics and Finance, Elsevier, vol. 55(C).
    7. Kaplan, Steven N. & Sørensen, Morten & Zakolyukina, Anastasia A., 2022. "What is CEO overconfidence? Evidence from executive assessments," Journal of Financial Economics, Elsevier, vol. 145(2), pages 409-425.
    8. Jie Chen & Woon Sau Leung & Wei Song & Marc Goergen, 2018. "Why female board representation matters: The role of female directors in reducing male CEO overconfidence in corporate decisions," Working Papers 2018-12, Swansea University, School of Management.
    9. Juwon Jang & Eunju Lee, 2024. "CEO confidence matters: the real effects of short sale constraints revisited," Review of Quantitative Finance and Accounting, Springer, vol. 62(2), pages 603-636, February.
    10. Johannes Brunzel, 2021. "Overconfidence and narcissism among the upper echelons: a systematic literature review," Management Review Quarterly, Springer, vol. 71(3), pages 585-623, July.
    11. Yuan Chang & Kun-Tsung Wu & Shu-Hui Lin & Chia-Jung Lin, 2024. "Board gender diversity and corporate social responsibility," International Journal of Corporate Social Responsibility, Springer, vol. 9(1), pages 1-29, December.
    12. Khoo, Joye & Cheung, Adrian (Wai Kong), 2025. "Subordinate executives’ confidence and labor investment efficiency," International Review of Economics & Finance, Elsevier, vol. 98(C).
    13. Killins, Robert & Ngo, Thanh & Wang, Hongxia, 2021. "Goodwill impairment and CEO overconfidence," Journal of Behavioral and Experimental Finance, Elsevier, vol. 29(C).
    14. Ulrike Malmendier & Vincenzo Pezone & Hui Zheng, 2023. "Managerial Duties and Managerial Biases," Management Science, INFORMS, vol. 69(6), pages 3174-3201, June.
    15. Dargenidou, Christina & Jackson, Richard H.G. & Tsalavoutas, Ioannis & Tsoligkas, Fanis, 2021. "Capitalisation of R&D and the informativeness of stock prices: Pre- and post-IFRS evidence," The British Accounting Review, Elsevier, vol. 53(4).
    16. Rakesh Pandey & Pallab Kumar Biswas & Muhammad Jahangir Ali & Mansi Mansi, 2020. "Female directors on the board and cost of debt: evidence from Australia," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(4), pages 4031-4060, December.
    17. André Betzer & Inga Bongard & Felix Schweder & Erik Theissen & Christine Volkmann, 2023. "All is not lost that is delayed: overconfidence and investment outcomes," Review of Managerial Science, Springer, vol. 17(7), pages 2297-2324, October.
    18. Lin Li & Wilson H. S. Tong, 2022. "Who shall succeed? An examination of manager overconfidence and CEO selection," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 49(9-10), pages 1736-1783, October.
    19. Danso, Albert & Lartey, Theophilus & Amankwah-Amoah, Joseph & Adomako, Samuel & Lu, Qinye & Uddin, Moshfique, 2019. "Market sentiment and firm investment decision-making," International Review of Financial Analysis, Elsevier, vol. 66(C).
    20. Gurdgiev, Constantin & Ni, Qiuxin, 2023. "Board diversity: Moderating effects of CEO overconfidence on firm financing decisions," Journal of Behavioral and Experimental Finance, Elsevier, vol. 37(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:bracre:v:56:y:2024:i:6:s0890838924001902. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/the-british-accounting-review .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.