Although prior studies have shown that CEO confidence increases firm's risk-taking behaviour,few studies specifically explore whether the link between CEO overconfidence and a firm's risk-taking influenced by a financial crisis.This paper investigates the effect of CEO overconfidence on the risk-taking behaviour of companies before and after the 2008 financial crisis.We find that the effect of CEO overconfidence on the risk-taking behaviour decreases after experiencing the 2008 crisis.The results are consistent using several time-varying overconfidence measures.The results remain robust using total firm risk.This paper attempts to shed light on the state dependence of the managerial traits of executives,and also has practical implications for corporate governance such as dynamically adjusting incentives for executive mangers after financial crisis.
关键词
过度自信/风险承担/金融危机/股价特质性波动
Key words
overconfidence/risk taking/financial crisis/idiosyncratic volatility of stock prices
维普
万方数据