Hirshleifer, David and Low, Angie and Teoh, Siew Hong (2010): Are Overconfident CEOs Better Innovators?
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Using options- and press-based proxies for CEO overconfidence (Malmendier and Tate 2005a, 2005b, 2008), we find that over the 1993-2003 period, firms with overconfident CEOs have greater return volatility, invest more in innovation, obtain more patents and patent citations, and achieve greater innovative success for given research and development (R&D) expenditure. Overconfident managers only achieve greater innovation than non-overconfident managers in innovative industries. Overconfidence is not associated with lower sales, ROA, or Q.
|Item Type:||MPRA Paper|
|Original Title:||Are Overconfident CEOs Better Innovators?|
|Keywords:||CEO Overconfidence; Innovation; R&D; Patent|
|Subjects:||M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M5 - Personnel Economics > M52 - Compensation and Compensation Methods and Their Effects
G - Financial Economics > G3 - Corporate Finance and Governance > G30 - General
M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M4 - Accounting and Auditing > M40 - General
|Depositing User:||Angie Low|
|Date Deposited:||03. May 2010 00:01|
|Last Modified:||11. Feb 2013 18:59|
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