Self Attribution Bias of the CEO: Evidence from CEO Interviews on CNBC

Kim, Y. Han

doi:10.2139/ssrn.2213119

Cited by 10 publications

(9 citation statements)

References 43 publications

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“…Kruger (1999) claims that overconfidence occurs when individuals think of themselves as "above average," which affects individual behavior in three ways: overestimation, overprecision, and overplacement. Kim (2013) emphasizes that self-attribution is an important conduit that abets overconfidence by attributing their successes to internal factors, such as personal abilities and their failures to external factors. Furthermore, overconfident CEOs tend to overestimate their firms' resource endowments and outcomes under their control (Malmendier & Tate, 2005).…”

Section: Theoretical Discussionmentioning

confidence: 99%

R&D investment and future firm performance: The role of managerial overconfidence and government ownership

et al. 2020

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We investigate the relationship among managerial overconfidence (MO), government ownership, and research and development (R&D) investment using data from Vietnamese public companies for the period 2007–2016. We also investigate how R&D investment, given MO and government ownership, affect future firm performance. Our results indicate that MO and government ownership are positively related to R&D investment. Conceptually, this study investigates novel factors affecting of R&D investment and their role in improving firm performance. Overall, this study emphasizes the importance of R&D investment in the corporate world, improving firm performance and, ultimately, economic prosperity.

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Section: Theoretical Discussionmentioning

confidence: 99%

R&D investment and future firm performance: The role of managerial overconfidence and government ownership

et al. 2020

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“…In contrast, we investigate comprehensive aspects of firm risk in a coherent manner: total risk, idiosyncratic risk (Supporting Information), financial risk, M&A, and the sensitivity of CEO compensation upon firm risk. We also link fWHR to various aspects of M&A (Doukas & Petmezas, ; Kim, ; Malmendier & Tate, ; Roll, ), such as the frequency, the dollar amount spent on acquisitions, merger premium, and investor response to acquisition announcements. In addition, we use various alternative measures of fWHR, such as the dummy variable for being in the widest tercile of fWHR.…”

Section: Development Of Hypotheses and Literaturementioning

confidence: 99%

The face of risk: CEO facial masculinity and firm risk

Kamiya

Kim

Park

2018

Euro Fin Management

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We examine whether a male CEO's facial masculinity, measured by facial width‐to‐height ratio (fWHR), predicts the riskiness of his firm. Using the face pictures of 1,162 CEOs in the Execucomp database, we find supporting evidence. Firms with more masculine‐faced CEOs have higher stock return volatility and higher financial leverage and are more acquisitive. Their frequency of acquisitions, the dollar amount spent on acquisitions, and the takeover premium are all higher. We find that more masculine‐faced CEOs’ compensation is more sensitive to the risk of the firm. The result is robust when we use AI (artificial intelligence)‐measured fWHR of the CEOs.

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“…The board is expected to remove CEOs who are believed to be poorly managing the company, judged in part on the basis of firm financial performance (Weisbach, 1988) but also in accordance with other social and political factors (Fredrickson, Hambrick, & Baumrin, 1988). More recently, scholars have focused on actions the CEO can take to alter the likelihood of dismissal (e.g., the CEO using self-attribution bias in discussing the company's performance; Kim, 2013). As we have explained, greed and altruism have various effects on the time orientation of decisions and other firm outcomes.…”

Section: Corporate Malfeasance and Corporate Citizenship Greedymentioning

confidence: 99%