I Am The Firm! Eponymous Firms and Rose-Coloured Forecasts

D. Kliger, Yevgeny Mugerman, Ruth Rooz
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引用次数: 1

Abstract

We invoke the famous Louis XIV quote “L'État, c'est moi,” applying it to the corporate world, and introduce the novel idea that a self-serving bias, which we define as “I Am The Firm,” is infused within the culture of certain companies. We hypothesize that the owners of eponymous firms – firms that bear the names of their owners – experience enhanced self-identification with their firms, and thus tend to inject their own subjective beliefs and desires into the realistic objective prospects of the firms. The “I am the firm” effect is a form of a self-serving bias, which arises from the blurring of boundaries between the owner and the corporate eponymy entity that carries the same name. Employing a unique corporate setting in Israel, we demonstrate that eponymous firms disclose unduly optimistic biased forecasts relative to their non-eponymous counterparts, which cannot be validated or justified solely by rational explanations. The obfuscation of the boundaries in eponymous firms between subjective illusory desires and objective realistic truths is revelatory and has far-reaching implications in various aspects of corporate decisions, which we suggest will require future research.
我就是律所!同名公司和乐观的预测
我们引用路易十四的名言“L'État, c'est moi”,将其应用于企业界,并引入一个新颖的想法,即在某些公司的文化中注入了一种自我服务的偏见,我们将其定义为“我是公司”。我们假设同名公司的所有者——以其所有者的名字命名的公司——对其公司的自我认同增强了,因此倾向于将自己的主观信念和愿望注入到公司的现实客观前景中。“我是公司”效应是一种自私自利的偏见,它源于所有者与同名公司实体之间界限的模糊。采用以色列独特的企业环境,我们证明了同名公司相对于非同名公司披露了过度乐观的偏见预测,这不能仅仅通过理性解释来验证或证明。在同名公司中,主观的虚幻欲望和客观的现实真相之间的界限模糊具有启发性,并对公司决策的各个方面具有深远的影响,我们认为这需要未来的研究。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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