This paper examines the link between managerial overconfidence, conservative accounting and investment. Using Japanese … investment to sales growth volatility. In addition, we examine whether conservative accounting mitigates agency costs and … find that conservative accounting increases investment--cash flow sensitivity. However, our results confirm that …

investment and expected returns. In imperfectly competitive industries, a firm's exposure to systematic risk is jointly affected … by its own investment strategy and the investment strategies of its industry peers, such that the dynamics of its …