Search results for "Overconfidence"
showing 4 items of 14 documents
Dividend Policy and Managerial Overconfidence: French Evidence
2021
This paper examines the impact of managerial overconfidence on dividend policy.The literature has identified two strands of reasoning. Deshmukh et al. (2013) argue that overconfident managers with relatively high investment needs perceive external funds as more costly than internal financing. This leads them to pay out lower dividends. Conversely, Wu and Liu (2011) claim that overconfident CEOs expect higher future cash flows and are prone to pay out higher dividends. We study a sample of 120 French firms for the period 2000–2015. Our results provide evidence that CEOs’ overconfidence plays a decisive role in explaining the dividend policy of French firms. Managerial overconfidence exerts a…
Goals and guesses as reference points: a field experiment on student performance
2022
In this paper, we study overconfidence and goal-setting in academic performance, with and without monetary incentives. Students enrolled in a microeconomics course were offered the possibility of setting their own target grade before taking part in the final exam. They were also asked to guess their grade immediately after they had taken the exam (“post-diction”). In general, students overestimated their performance, both at the goal-setting and at the post-diction stages. Controlling for several sources of this bias (cognitive abilities, academic record and self-reported academic confidence), we find that the use of monetary rewards mitigates the overestimation of potential achievements an…
La hubris manageriale quale fonte della irresponsabilità d’impresa: uno studio esplorativo
2014
Obiettivo del paper: L’ondata di scandali etici che ha colpito intensamente il mondo delle imprese a partire dalla fine del XX secolo ha fatto emergere l’esigenza di esplorare i meccanismi istituzionali tesi a evitare nuovi casi di corporate social irresponsibility (CSI). S’intende contribuire a tale dibattito introducendo la trappola della hubris manageriale quale determinante della CSI. Metodologia: Esame qualitativo-longitudinale del caso Parmalat nel periodo in cui è stata sotto la guida del suo fondatore Calisto Tanzi (1961-2003). L’analisi del caso segue i criteri scientifici del campionamento teorico, della triangolazione dei fatti e della periodizzazione della narrazione. Risultati:…
"Rational herding in crowdfunding, social preferences under uncertainty, and overplacement in known and unknown tasks: a behavioral approach"
2020
It has been proved in this dissertation how experimental economics continues to be a tool that, as it nourishes theoretical economics (and viceversa), it keeps producing results that are necessary to understand how to articulate social relations which, ultimately, have consequences oneconomic relations. Specifically, Chapter 1 has studied how the dissemination of new information affects crowdfunding markets and the generation of herding behaviour. Specifically, we provide evidence in that such behaviour is rational and could be well moulded through optimal choice under uncertainty with Bayesian review of beliefs. In this sense, the effect of the first sponsors on the agents# behaviour has b…