Add to ORKGIndividuals are overconfident, especially those in positions to influence outcomes. The impact of hiring an overconfident portfolio manager is studied here within the standard principal-agent framework. When compensation is endogenously determined, we find that investors can benefit from managerial overconfidence. Overconfidence induces a higher level of effort until the effects of restrictions on portfolio formation take over. Further, by increasing the incentive fee and sharing more risk the investor can curb excessive risk taking. However, excessive overconfidence is detrimental to the investor. We empirically test and confirm the effects of portfolio constraints and incentive fee on manager’s self-attribution bias
We argue that managerial overconfidence bias affects working capital management. Overconfident SME ...
They tend to make hedging decisions based on their own price hunches, writes Evgenia Golubev
The plan of this research is to probe the overconfidence behavior and managerial decisions in the Is...
Following extensive empirical evidence about market anomalies and overconfidence, the analysis of fi...
Empirical evidence suggests that managerial overconfidence and government guarantees contribute subs...
Experimental evidence suggests that people tend to be overconfident in the sense that they overestim...
Overconfidence, one of the most important findings in the field of psychology of judgment and decisi...
Experimental evidence suggests that people tend to be overconfident in the sense that they overestim...
In the context of a capital budgeting problem, we show how and when a manager’s overconfidence can b...
We show that managerial overconfidence, which has been found to influence a number of corporate fina...
A positive relation between overconfidence and investment provision has been theoretically justified...
An electronic version of the paper may be downloaded • from the SSRN website: www.SSRN.com • ...
Economists typically assume that agents behave rationally. Yet a large and growing body of research ...
Objective: Overconfidence is an interdisciplinary concept related to the possibility of misjudgment ...
We argue that managerial overconfidence bias affects working capital management. Overconfident SME ...
They tend to make hedging decisions based on their own price hunches, writes Evgenia Golubev
The plan of this research is to probe the overconfidence behavior and managerial decisions in the Is...
Following extensive empirical evidence about market anomalies and overconfidence, the analysis of fi...
Empirical evidence suggests that managerial overconfidence and government guarantees contribute subs...
Experimental evidence suggests that people tend to be overconfident in the sense that they overestim...
Overconfidence, one of the most important findings in the field of psychology of judgment and decisi...
Experimental evidence suggests that people tend to be overconfident in the sense that they overestim...
In the context of a capital budgeting problem, we show how and when a manager’s overconfidence can b...
We show that managerial overconfidence, which has been found to influence a number of corporate fina...
A positive relation between overconfidence and investment provision has been theoretically justified...
An electronic version of the paper may be downloaded • from the SSRN website: www.SSRN.com • ...
Economists typically assume that agents behave rationally. Yet a large and growing body of research ...
Objective: Overconfidence is an interdisciplinary concept related to the possibility of misjudgment ...
We argue that managerial overconfidence bias affects working capital management. Overconfident SME ...
They tend to make hedging decisions based on their own price hunches, writes Evgenia Golubev
The plan of this research is to probe the overconfidence behavior and managerial decisions in the Is...