This paper builds upon the idea that CEO overconfidence is endogenously generated in the corporate context. We provide evidence that managerial overconfidence is enhanced by contextual circumstances such as: past experience of the CEO, power allocation, quality of corporate governance and...

Does CEO overconfidence help explain pay inequalities in top management teams? Tournament literature argues that pay gaps between different executive echelons increase competition among executives in the goal to replace the incumbent CEO and by so doing incentivize all top management team...

This paper studies the effect of entrepreneurial optimism on the renegotiation procedure outcome in the case of financially distressed companies. We model a three actor renegotiation procedure whit a realistic bank, an optimistic entrepreneur and a trade supplier (who is an optimistic...