2022
DOI: 10.1108/jmd-08-2021-0236
|View full text |Cite
|
Sign up to set email alerts
|

CEO overconfidence and forecast accuracy moderated by CEOs' accounting-based attributes

Abstract: PurposeThe purpose of this paper is to focus on the moderating effect of CEO's accounting-based attributes on the relationship between chief executive officer (CEO) overconfidence and forecast accuracy in European companies.Design/methodology/approachData from a sample of 347 European firms listed on Stoxx Europe 600 index from 2005 to 2018 are used to test the moderation model using moderation regression analysis.FindingsEvidence reveals that CEO overconfidence is negatively associated with forecast accuracy.… Show more

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
1

Citation Types

0
1
0

Year Published

2023
2023
2024
2024

Publication Types

Select...
4

Relationship

0
4

Authors

Journals

citations
Cited by 4 publications
(1 citation statement)
references
References 80 publications
(140 reference statements)
0
1
0
Order By: Relevance
“…Building on the upper echelons perspective, managerial overconfidence is a CEO's tendency to make estimates of their capabilities and knowledge (Hambrick, 2007) regarding strategic decisions. Previous studies show that CEO overconfidence, a common personality trait, is associated with more desirable and unrealistic outcomes' expectations (Taylor and Brown, 1988), riskier debt and investment strategies (Malmendier and Tate, 2008) and over-optimistic forecasting (Ben Ahmed and Jarboui, 2022). Being overconfident has been related to the desire for higher-level investments depending on intensified investment cash flow sensitivity (Malmendier and Tate, 2005).…”
Section: Literature Review and Hypotheses Developmentmentioning
confidence: 99%
“…Building on the upper echelons perspective, managerial overconfidence is a CEO's tendency to make estimates of their capabilities and knowledge (Hambrick, 2007) regarding strategic decisions. Previous studies show that CEO overconfidence, a common personality trait, is associated with more desirable and unrealistic outcomes' expectations (Taylor and Brown, 1988), riskier debt and investment strategies (Malmendier and Tate, 2008) and over-optimistic forecasting (Ben Ahmed and Jarboui, 2022). Being overconfident has been related to the desire for higher-level investments depending on intensified investment cash flow sensitivity (Malmendier and Tate, 2005).…”
Section: Literature Review and Hypotheses Developmentmentioning
confidence: 99%