CEO overconfidence: A dual-detriment to investment-price sensitivity via market negligence and reduced informed trading

IF 2.9 3区 管理学 Q2 BUSINESS, FINANCE
Heung-Jae Jeon
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引用次数: 0

Abstract

This study investigates the impact of the direct and indirect effects of CEO overconfidence on investment-price sensitivity (IPS). Using a large sample of U.S. S&P 1500 firms from 1993 to 2020, I find a significant negative relationship between CEO overconfidence and investment-price sensitivity. Furthermore, the findings demonstrate that the relationship is partially mediated by the level of informed trading. This implies that overconfident CEOs not only resist using external information (direct effect) but also unintentionally diminish their chances to learn from the market by reducing informed trading (indirect effect). This study contributes to the existing literature by highlighting the role of CEO characteristics in shaping the information environment and establishing a causal link between CEO personality traits and corporate decisions.

CEO过度自信:市场疏忽和知情交易减少对投资-价格敏感性的双重损害
本研究探讨CEO过度自信对投资价格敏感性(IPS)的直接和间接影响。我以1993年至2020年的美国标准普尔1500指数成分股公司为样本,发现CEO过度自信与投资价格敏感性之间存在显著的负相关关系。此外,研究结果表明,知情交易水平部分介导了这种关系。这意味着过度自信的ceo不仅拒绝使用外部信息(直接影响),而且通过减少知情交易无意中减少了他们从市场学习的机会(间接影响)。本研究通过突出CEO特质在信息环境塑造中的作用,并建立CEO人格特质与公司决策之间的因果关系,对现有文献做出了贡献。
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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来源期刊
CiteScore
6.00
自引率
3.00%
发文量
24
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