Bank systemic risk and CEO overconfidence

Lee, Jin Ping; Lin, Edward M.H.; Lin, James Juichia; Zhao, Yang

doi:10.1016/j.najef.2019.03.011

Cited by 20 publications

(23 citation statements)

References 44 publications

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“…According to this theory, organizational outcomes and decision-making are reflected by the values and cognitive traits of the authoritative players in an organization. In this sense, a vast body of literature asserts that powerful organizational actors play a significant role in the explanation of CSR activities (Chen et al 2019;Lee et al 2019). In this context, a large body of literature notes that strong organizational actors play an important role in describing CSR operations (Lee et al 2019;Nour et al 2020).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…Researchers claim a close relationship between corporate governance (CG) and CSR dedication from this viewpoint. In fact, CG elements related to strategic decisions can affect a strong commitment to social responsibility (Lee et al 2019). Therefore, given the mixed results reported in the literature, CG needs to be considered in the CSR-CEO profile.…”

Section: Introductionmentioning

confidence: 99%

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RETRACTED: The Relationship between CEO Psychological Biases, Corporate Governance and Corporate Social Responsibility

Salhi

2021

JRFM

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Despite that the relationship between corporate social responsibility activities and real estate operations seems relevant, only some studies have been conducted to explore the reasons that drive these activities in real estate companies. This work presents the relationship between CEO personality traits and corporate social responsibility (CSR) and shows whether corporate governance (CG) practices mitigate or enhance this relationship. This study uses a sample of 420 firm-year-observations using a sample of European real estate firms indexed on Stoxx Europe 600 Index from 2010 to 2019. To test the developed hypotheses, feasible generalized least square (FGLS) regression is applied. The results show that increased confidence in CEOs is an important factor in determining corporate incentives to undertake social responsibility activities. In addition, it has been shown that effective corporate governance practices lead significantly to moderate CEO behavior with regard to corporate social responsibility sharing. Since corporate governance can have a significant impact on CEOs’ behavior in relation to corporate social responsibility, the author recommends firms to improve corporate governance in listed European real estate companies.

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Section: Theoretical Frameworkmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

RETRACTED: The Relationship between CEO Psychological Biases, Corporate Governance and Corporate Social Responsibility

Salhi

2021

JRFM

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“…Malmendier & Tate (2008) found that overconfident managers overestimate their ability to generate returns, they tend to undertake value-destroying mergers. The same evidences that overconfident managers are more acquisitive than other managers (Lee, Lin, Lin et al, 2019). In terms of the research on the impact of overconfidence on internal behavior, Malmendier & Tate (2005) empirically use executive stock option exercise behavior to determine confidence levels and find that overconfident CEO's investments are more sensitive to internal cash flow.…”

Section: Introductionmentioning

confidence: 79%

“…The first method is the stock option measurement, which takes the data of company stocks and stock options as an indicator to measure the manager overconfidence of the company. If the company manager who got option incentives from the company does not exercise the right after the option expires, or even buys the company stock during the term of office, it can be considered that he/she is optimistic about the company's follow-up operations, and believes that the company's value will further increase, indicating that the manager is overconfident about his/her own management level (Lee, Lin, Lin et al, 2019). However, the existing research found that ownership concentration has a positive impact on the level of overconfidence of the executives.…”

Section: Measurement Of Overconfidencementioning

confidence: 99%

Relationship Between Ceo Overconfidence, Pay Gap and External Guarantee

Lü¹

2020

RACP

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This paper attempts to disclose the intrinsic relationship between CEO overconfidence, pay gap and external guarantee. First, the CEO overconfidence was measured by four personal traits of the CEO, namely, gender, age, education level and tenure. Then, an empirical analysis was performed to disclose the impact of CEO overconfidence on the pay gap of senior executives and the decisions on external guarantee of a listed company. Moreover, the authors analyzed how this impact is regulated by corporate governance mechanism. The results show that the level of CEO overconfidence is negatively correlated with the pay gap of senior executives; the external guarantee of the company is greatly suppressed by CEO overconfidence.

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“…The external factors are more important and have more profound impact on banks, because they can influence whole sectors or an entire country, and as such they are beyond the control of any bank and can inflict serious problems on bank businesses (see e.g. Kamani, 2019;Lee, Lin, Lin and Zhao, 2020;Ognjanović and Pešterac, 2019).…”

Section: Introductionmentioning

confidence: 99%

The effect of macro factors on bank credit activity in the Republic of Serbia

Živkov¹,

Poparić²,

Ilić³

2020

Škola biznisa

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This paper investigates whether and how key macro-fundamentals in Serbia affect the volumes of issued loans of Erste bank to public and business sector in Serbia. We made an effort to determine which particular macro factor has the highest influence on issued credits of Erste bank, and to measure the exact average magnitude of these influences. The main idea is to find out how GDP, inflation, central bank referent interest rate, exchange rate changes and Euribor affect short-term and long-term credit activity of Erste bank in Serbia. The computations are done by applying several multivariate regression models in which dependant variables are the volume of issued credits towards civil sector and enterprises. Based on the results, we can report that Euribor is the most important factor of all scrutinized macro-aggregates, since it affects most of the analysed bank loans. Besides Euribor, we find that other macro fundamentals influence the issued loans only sporadically. In other words, the level of GDP and inflation affect only long-term loans for businesses, while referent interest rate influences only short-term loans for public. We find that exchange rate changes have no effect on any loan of Erste bank, whatsoever, which clearly indicates that the bank protects itself very successfully against this type of macro risk.

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Bank systemic risk and CEO overconfidence

Cited by 20 publications

References 44 publications

RETRACTED: The Relationship between CEO Psychological Biases, Corporate Governance and Corporate Social Responsibility

RETRACTED: The Relationship between CEO Psychological Biases, Corporate Governance and Corporate Social Responsibility

Relationship Between Ceo Overconfidence, Pay Gap and External Guarantee

The effect of macro factors on bank credit activity in the Republic of Serbia

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