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More words than actions: CEO overconfidence and digital decoupling

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  • Chen, Qi
  • Liang, Haoran
  • Li, Menghan

Abstract

Using data from A-share listed companies in China from 2011 to 2022, we explore the influence of CEO overconfidence on digital decoupling. The evidence indicates that CEO overconfidence is positively and significantly associated with digital decoupling. The mechanism tests indicate that CEO overconfidence influences digital decoupling primarily by heightening agency costs. The impact of CEO overconfidence on digital decoupling is more significant when firms face strong incentives to acquire resources, relieve performance pressure, or follow market trends. In contrast, the effect is weaker when governance mechanisms of corporate governance or institutional shareholding are effective. After separating the “Words” and “Actions” dimensions, we find that CEO overconfidence primarily manifests in significantly increasing digital disclosures. The influence of CEO overconfidence on digital decoupling undermines firms’ competitiveness. These findings deepen the understanding of managerial behavior biases in corporate digital transformation.

Suggested Citation

  • Chen, Qi & Liang, Haoran & Li, Menghan, 2026. "More words than actions: CEO overconfidence and digital decoupling," Research in International Business and Finance, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:riibaf:v:88:y:2026:i:c:s0275531926001674
    DOI: 10.1016/j.ribaf.2026.103440
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