The bright side of managerial over-optimism

• Autores: Gilles Hilary, Charles Hsu, Benjamin Segal, Rencheng Wang
• Localización: Journal of accounting and economics, ISSN 0165-4101, Vol. 62, Nº. 1, 2016, págs. 46-64
• Idioma: inglés
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• Dialnet Métricas: 1 Cita
• Resumen

  • Abstract Human estimation and inference are subject to systematic biases such as overconfidence and over-optimism. In contrast to prior research that has identified multiple negative consequences of these biases, we focus on positive effects. We empirically examine a setting in which over-optimism a) is a related but different bias from overconfidence, b) emerges dynamically in a rational economic framework, and c) generates higher managerial effort. Importantly, this additional effort improves firm profitability and market value.