Are overconfident CEOs better leaders? Evidence from stakeholder commitments

• Main Authors: PHUA, Kenny, THAM, T. Mandy, WEI, Chi Shen
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2018
• Subjects: CEO overconfidence; Leadership; Customer-supplier; Employee ownerhsip; Corporate Finance; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5379; https://ink.library.smu.edu.sg/context/lkcsb_research/article/6378/viewcontent/Phua_Tham_Wei_2018_Final_version.pdf
• Institution: Singapore Management University

We find evidence that the leadership of overconfident chief executive officers (CEOs) induces stakeholders to take actions that contribute to the leader's vision. By being intentionally overexposed to the idiosyncratic risk of their firms, overconfident CEOs exhibit a strong belief in their fir...