The bright side of managerial over-optimism

• 成果类型: Article
• 署名作者: Hilary, Gilles; Hsu, Charles; Segal, Benjamin; Wang, Rencheng
• 署名单位: INSEAD Business School; Hong Kong University of Science & Technology; Fordham University; Hebrew University of Jerusalem; University of Queensland
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2016.04.001
• 发表日期: 2016
• 关键词: time-series properties; institutional investors; earnings management; cross-section; MARKET; performance; overconfidence; accruals; BEHAVIOR; association

摘要

Human estimation and inference are subject to systematic biases such as overconfidence and over-optimism. In contrast to prior research that has identified multiple negative consequences of these biases, we focus on positive effects. We empirically examine a setting in which over-optimism a) is a related but different bias from overconfidence, b) emerges dynamically in a rational economic framework, and c) generates higher managerial effort. Importantly, this additional effort improves firm profitability and market value. (C) 2016 Elsevier B.V. All rights reserved.