Previous empirical work on adverse consequences of CEO overconfidence raises the question of why firms would hire overconfident managers. Theoretical research suggests a reason, that overconfidence can sometimes benefit shareholders by increasing investment in risky projects. Using options- and...

A larger CEO network can reduce the cost of equity by reducing information asymmetry between the firm and outsiders, and by increasing trust between the firm and stakeholders. Alternatively, a larger CEO network can increase the cost of equity because higher CEO connectedness encourages greater...

This is the set of presentation slides for the paper "Are Overconfident CEOs Better Innovators?"Previous empirical work on adverse consequences of CEO overconfidence raises the question of why firms hire overconfident managers. Theoretical research suggests a reason: overconfidence can benefit...