Showing 1 - 9 of 9
financing as overpriced, especially equity. Such overconfident managers use less external finance and, conditional on accessing … excessively on internal finance. Third, CEOs with military experience pursue more aggressive policies, including heightened …
Persistent link: https://www.econbiz.de/10008624578
Cash- and stock-financed takeover bids induce strikingly different target revaluations. We exploit detailed data on unsuccessful takeover bids between 1980 and 2008, and show that targets of cash offers are revalued on average by +15% after deal failure, whereas stock targets return to their...
Persistent link: https://www.econbiz.de/10011264934
Do acquirors profit from acquisitions, or do acquiring CEOs overbid and destroy shareholder value? We present a novel approach to estimating the long-run abnormal returns to mergers exploiting detailed data on merger contests. In the sample of close bidding contests, we use the loser's...
Persistent link: https://www.econbiz.de/10011227917
Compensation, status, and press coverage of managers in the U.S. follow a highly skewed distribution: a small number of 'superstars' enjoy the bulk of the rewards. We evaluate the impact of CEOs achieving superstar status on the performance of their firms, using prestigious business awards to...
Persistent link: https://www.econbiz.de/10005774763
destroy value. They also perceive outside finance to be over-priced. We classify CEOs as overconfident when, despite their …
Persistent link: https://www.econbiz.de/10005034329
We argue that managerial overconfidence can account for corporate investment distortions. Overconfident managers overestimate the returns to their investment projects and view external funds as unduly costly. Thus, they overinvest when they have abundant internal funds, but curtail investment...
Persistent link: https://www.econbiz.de/10005714032
additional dollar of financing deficit than their peers. Moreover, the frequency with which they access any external finance …
Persistent link: https://www.econbiz.de/10005778833
The composition and functioning of corporate boards is at the core of the academic and policy debate on optimal corporate governance. But does board composition matter for corporate decisions? In this paper, we analyze the role of financial experts on boards. In a novel panel data set on board...
Persistent link: https://www.econbiz.de/10005004695
Why do security analysts issue overly positive recommendations? We propose a novel approach to distinguish strategic motives (e.g., generating small-investor purchases and pleasing management) from nonstrategic motives (genuine overoptimism). We argue that nonstrategic distorters tend to issue...
Persistent link: https://www.econbiz.de/10005778519