We find that firms behave consistently with how their CEOs behave personally in the context of leverage choices …. Analyzing data on CEOs' leverage in their most recent primary home purchases, we find a positive, economically relevant, robust … relation between corporate and personal leverage in the cross-section and when examining CEO turnovers. The results are …

managers. Our model predicts that high-quality firms may issue equity in equilibrium, which contrasts the results in Fairchild … (2005). Unlike in Fairchild (2005), managers are not equally overconfident and no exogenously given bankruptcy costs exist …

report high equity earnings. Managers rely most heavily on debt to finance their asset growth when their future earnings … perspective equity is "expensive". Managers of high debt issuing firms are more likely to be newly appointed and also more likely …

, hence, to ascertain the pattern of financing decisions of overconfident managers and identify the relevant capital structure … theory (trade-off or pecking order theory) that can be used to explain financing decisions of overconfident managers. We … collected a sample of 145 private companies. The degree of overconfidence was distinguished by surveying the managers on …

) which factors - country- or firm-specific - are more relevant in explaining leverage in Poland, (2) which theory - trade … importance of country-specific factors (especially in large-sized, listed firms). The signs of the associations between leverage …