Do founder CEOs and overconfidence affect firm risk?

IF 2.4 Q2 BUSINESS, FINANCE

Accounting Research Journal Pub Date : 2023-07-21 DOI:10.1108/arj-09-2022-0234

Paulina Sutrisno, S. Utama, A. Hermawan, E. Fatima

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引用次数: 1

Abstract

Purpose In the context of a two-tier governance system, this study aims to investigate whether CEO overconfidence affects firm risk. In addition, this study examines the moderating role of the founder CEO on CEO overconfidence and firm risk. Design/methodology/approach This study uses a composite score index of CEO overconfidence with a sample of nonfinancial firms listed on the Indonesia Stock Exchange from 2012 to 2019. It tests the research hypothesis with multiple linear regression analysis. Findings The findings indicate that CEO overconfidence reduces firm risk. In contrast, the founder CEO does not affect the relationship between CEO overconfidence and firm risk. Research limitations/implications This study supports the upper echelon theory that argues that firms’ top management affects firms’ outcomes and behaviors. Practical implications The top management team heavily affects firms’ outcomes and behaviors in a two-tier governance system. Furthermore, firms’ selection policy of overconfident CEOs will be improved because these CEOs can diversify firm risks more effectively. Originality/value To the best of the authors’ knowledge, this study is the first to examine the role of the founder in the relationship between CEO overconfidence and firm risk.

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创始人ceo和过度自信会影响公司风险吗?

目的在双层治理体系的背景下，本研究旨在调查CEO过度自信是否会影响企业风险。此外，本研究还考察了创始人CEO对CEO过度自信和企业风险的调节作用。设计/方法/方法本研究使用首席执行官过度自信的综合得分指数，以2012年至2019年在印度尼西亚证券交易所上市的非金融公司为样本。运用多元线性回归分析对研究假设进行了检验。研究结果表明，CEO的过度自信会降低公司风险。相反，创始人CEO不影响CEO过度自信与企业风险之间的关系。研究局限性/含义本研究支持上层理论，即企业高层管理会影响企业的结果和行为。实际含义在双层治理体系中，最高管理团队严重影响企业的结果和行为。此外，企业过度自信CEO的选择政策将得到改善，因为这些CEO可以更有效地分散企业风险。原创性/价值据作者所知，本研究首次考察了创始人在CEO过度自信与公司风险之间关系中的作用。

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

Accounting Research Journal BUSINESS, FINANCE-

CiteScore

5.00

自引率

0.00%

发文量