CEO Overconfidence and Management Forecasting

• Main Authors: HRIBAR, Paul, YANG, Holly I.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2016
• Subjects: overconfidence; voluntary forecast; earnings management; Accounting; Corporate Finance; Human Resources Management
• Online Access: https://ink.library.smu.edu.sg/soa_research/1161; https://ink.library.smu.edu.sg/context/soa_research/article/2160/viewcontent/CEO_OverconfidenceMgtForecasting_2016.pdf
• Institution: Singapore Management University

This paper examines how overconfidence affects the properties of management forecasts. Using both the ‘over‐optimism’ and ‘miscalibration’ effects of overconfidence to generate our predictions, we examine three research questions. First, we examine whether overconfidence increases the likelihood of...