Are educational managers credible or overconfident? Evidence from share repurchases in Taiwan

Do CEO Overconfidence and International Diversification Strategy affect the Capital Structure of Shariah Compliant Companies?

“…Given those results, it can be concluded that highly qualified CEOs are aggressive, willing to take high-risk financing instruments, overconfident of their skill and knowledge which induce them to use the riskiest debt instrument (short-term debt). This argument is consistent with the evidence from Su et al (2019) and Chen, Leung, Song, & Goergen (2019) which suggest that highly qualified managers are more subjected to overconfidence. Besides, Rakhmayil and Yuce (2005) found that CEOs with higher education level tend to have greater financial leverage.…”

“…The UET also described that organizational strategic outcomes and processes are functions of managerial characteristics of top managers (Malmendier & Tate 2005) such as observable, age, functional tracks, career experiences, education, socioeconomic roots, financial position group, and group characteristics (Hambrick & Mason, 1984). A manager's education level influences the firm's strategic decision, whereby highly educated managers are expected to consider a riskier strategic choice, thus being more overconfident (Hambrick & Mason, 1984;Lee & Moon, 2016;Rakhmayil & Yuce, 2005;Su, Lin, Chen, and Lowe, 2019). In terms of gender difference, most of the literature on psychology, ethics, and business supported the notion that females were more conservative, less confident, and more risk-averse than male as suggested by Albaity and Rahman (2012), Barno (2017), Graham, Harvey and Puri (2013) and Skała and Weill (2018).…”

The Effect of Ownership Structure on Disclosure Quality and Credit Ratings in Family Firms: The Moderating Role of Auditor Choice

“…A family firm’s disclosure quality rating is taken from a widely used disclosure rating system in Taiwan, the Information Disclosure and Transparency Rating System (IDTRS; Lee et al, 2017; S. Li, 2018; Su et al, 2019). To assess firm disclosure quality, the IDTRS have developed 114 “yes” or “no” questions, which can be further grouped into five different categories: (a) compliance with mandatory disclosure, (b) timeliness of reporting, (c) disclosure of financial forecasts, (d) disclosure of annual reports, and (e) corporate website disclosure.…”