profit from doing so. However, since CEOs are risk-averse, highly un-diversified, and face litigation costs from trading on …, outright un-profitability — of doing so to indirectly benefit by prolonging their tenure. Our estimates imply that the average …

We examine how CEO overconfidence impacts profitability and stock return for firms at different stages in their life … on firms' decision making and profitability. We find that firms with overconfident CEOs perform differently and have …

flows injected and withdrawn by the principal. We introduce the manager's profitability index (MPI), which is invariant …

costs and unused resource constraints. Our results show that the incremental impact of managerial expectations on cost … asymmetry is the strongest when adjustment costs and unused resources are high. Conversely, when both are low, expectations have … magnitude of adjustment costs, and optimistic managerial expectations; by contrast, the strongest cost anti-stickiness occurs …

costs and unused resource constraints. Our results show that the incremental impact of managerial expectations on cost … asymmetry is the strongest when adjustment costs and unused resources are high. Conversely, when both are low, expectations have … magnitude of adjustment costs, and optimistic managerial expectations; by contrast, the strongest cost anti-stickiness occurs …

risk on agency costs. We find decreased firm value, especially for firms with lower levels of investor protection and with … the highest expected agency costs. We also find that managerial incentives are reduced as measured by lower CEO pay …