CEO Overconfidence and Long-Term Performance Following R&D Increases

Sheng Syan Chen, Keng Yu Ho, Po Hsin Ho

研究成果: 雜誌貢獻期刊論文同行評審

47 引文 斯高帕斯(Scopus)

摘要

We examine the relation between Chief Executive Officer (CEO) overconfidence and significant increases in research and development (R&D) expenditures. Although prior studies reveal a significantly positive market reaction to increases in R&D expenditures in both the long and short run, we find that long-run stock performance is positive only for firms whose CEOs are not overconfident. Our findings, which may be attributable to overinvestment and the overestimation of future cash flows, imply that R&D resulting from overconfident behavior does not provide any value to firms.

原文???core.languages.en_GB???
頁(從 - 到)245-269
頁數25
期刊Financial Management
43
發行號2
DOIs
出版狀態已出版 - 2014

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