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Self-attribution of overconfident CEOs and asymmetric investment-cash flow sensitivity
16 references·7 citing·41 second hop
Self-attribution of overconfident CEOs and asymmetric investment-cash flow sensitivity (2017)Self-attribution of overconfident CEOs an…Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches (2008)Estimating Standard Errors in…Over-investment of free cash flow (2006)Over-investment of free cash …CEO Overconfidence and Corporate Investment (2005)CEO Overconfidence and Corpor…Unskilled and unaware of it: How difficulties in recognizing one's own incompetence lead to inflated self-assessments. (1999)Unskilled and unaware of it: …Industry costs of equity (1997)Industry costs of equityDo Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints? (1997)Do Investment-Cash Flow Sensi…The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems (1993)The Modern Industrial Revolut…Managerial discretion and optimal financing policies (1990)Managerial discretion and opt…Illusion and well-being: A social psychological perspective on mental health. (1988)Illusion and well-being: A so…Financing Constraints and Corporate Investment (1988)Financing Constraints and Cor…Financing Constraints and Corporate Investment (1987)Financing Constraints and Cor…The Hubris Hypothesis of Corporate Takeovers (1986)The Hubris Hypothesis of Corp…Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers (1986)Agency Costs of Free Cash Flo…Corporate financing and investment decisions when firms have information that investors do not have (1984)Corporate financing and inves…Judgment under uncertainty: Heuristics and biases (1982)Judgment under uncertainty: H…Risk, Return, and Equilibrium: Empirical Tests (1973)Risk, Return, and Equilibrium…Financial constraints, capital misallocation and firm’s total factor productivity (TFP) loss – empirical evidence from listed manufacturing companies in China (2023)Financial constraints, capita…Board diversity: Moderating effects of CEO overconfidence on firm financing decisions (2023)Board diversity: Moderating e…Financing constraints and innovation performance: the moderating role of the network location of cross-border innovation cooperation among Internet enterprises (2022)Financing constraints and inn…Effects of financial constraints and managerial overconfidence on investment-cash flow sensitivity (2022)Effects of financial constrai…Impact of CEO narcissism and hubris on corporate sustainability and firm performance (2021)Impact of CEO narcissism and …Are better-governed firms more innovative? Evidence from Korea (2020)Are better-governed firms mor…Managerial Overconfidence, Corporate Social Responsibility Activities, and Financial Constraints (2019)Managerial Overconfidence, Co…CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)The Cross-Section of Expected Stock Returns (1992)Common risk factors in the returns on stocks and bonds (1993)Multifactor Explanations of Asset Pricing Anomalies (1996)Measuring Mutual Fund Performance with Characteristic‐Based Benchmarks (1997)Conditional Skewness in Asset Pricing Tests (2000)The Behavior of Stock-Market Prices (1965)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)On Persistence in Mutual Fund Performance (1997)Theory of the firm: Managerial behavior, agency costs and ownership structure (1976)The Financial Accelerator in a Quantitative Business Cycle Framework (1998)Managing with Style: The Effect of Managers on Firm Policies (2003)New Evidence on Measuring Financial Constraints: Moving Beyond the KZ Index (2010)A Theory of Social Comparison Processes (1954)Judgment under Uncertainty: Heuristics and Biases (1975)Judgment Under Uncertainty: Heuristics and Biases. (1984)Individual differences in reasoning: Implications for the rationality debate? (2000)Representativeness Revisited: Attribute Substitution in Intuitive Judgment (2002)Heuristics and Biases: The Psychology of Intuitive Judgment (2004)The Standard Edition of the Complete Psychological Works of Sigmund Freud (1953)The CES-D Scale (1977)Social Learning Theory. (1978)Culture and the Self: Implications for Cognition, Emotion, and Motivation (1991)The Emerging Field of Emotion Regulation: An Integrative Review (1998)Subjective well-being: Three decades of progress. (1999)Performance Pay and Top-Management Incentives (1990)Agency costs of free cash flow, corporate finance, and takeovers (1996)Higher market valuation of companies with a small board of directors (1996)A Survey of Corporate Governance (1997)Corporate governance, chief executive officer compensation, and firm performance (1999)The Market for "Lemons": Quality Uncertainty and the Market Mechanism (1970)Determinants of corporate borrowing (1977)The Capital Structure Puzzle (1984)Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature (2001)Specification Tests in Econometrics (1978)Econometric Analysis of Cross Section and Panel Data (2001)Robust Standard Errors for Panel Regressions with Cross-Sectional Dependence (2007)Robust Inference With Multiway Clustering (2011)Policy Uncertainty and Corporate Investment (2015)The Benefits of Lending Relationships: Evidence from Small Business Data (1994)Threshold effects in non-dynamic panels: Estimation, testing, and inference (1999)
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References

  • 1984Corporate financing and investment decisions when firms have information that investors do not have18,936 cited
  • 1986Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers17,216 cited
  • 1973Risk, Return, and Equilibrium: Empirical Tests14,248 cited
  • 2008Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches10,793 cited
  • 1993The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems8,544 cited
  • 1988Illusion and well-being: A social psychological perspective on mental health.7,808 cited
  • 1999Unskilled and unaware of it: How difficulties in recognizing one's own incompetence lead to inflated self-assessments.7,694 cited
  • 1997Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?6,790 cited
  • 1997Industry costs of equity5,793 cited
  • 1988Financing Constraints and Corporate Investment5,566 cited
  • 1987Financing Constraints and Corporate Investment4,354 cited
  • 1986The Hubris Hypothesis of Corporate Takeovers3,764 cited
  • 2005CEO Overconfidence and Corporate Investment3,686 cited
  • 1990Managerial discretion and optimal financing policies3,679 cited
  • 1982Judgment under uncertainty: Heuristics and biases

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3,643 cited
  • 2006Over-investment of free cash flow2,918 cited
  • Cited by

    • 2019Managerial Overconfidence, Corporate Social Responsibility Activities, and Financial Constraints66 cited
    • 2021Impact of CEO narcissism and hubris on corporate sustainability and firm performance47 cited
    • 2023Board diversity: Moderating effects of CEO overconfidence on firm financing decisions30 cited
    • 2023Financial constraints, capital misallocation and firm’s total factor productivity (TFP) loss – empirical evidence from listed manufacturing companies in China29 cited
    • 2022Effects of financial constraints and managerial overconfidence on investment-cash flow sensitivity23 cited
    • 2020Are better-governed firms more innovative? Evidence from Korea20 cited
    • 2022Financing constraints and innovation performance: the moderating role of the network location of cross-border innovation cooperation among Internet enterprises18 cited