CEO Overconfidence and Management Forecasting

Paul Hribar and Holly Yang

Contemporary Accounting Research, 2016, vol. 33, issue 1, 204-227

Abstract: This paper examines how overconfidence affects the properties of management forecasts. Using both the “over†optimism†and “miscalibration†dimensions of overconfidence to generate our predictions, we examine three research questions. First, we examine whether overconfidence increases the likelihood of issuing a forecast. Second, we examine whether overconfidence increases the amount of optimism in management forecasts. Third, we examine whether overconfidence increases the precision of the forecast. Using both options†and press†based measures to proxy for individual overconfidence, we find support for all three research questions.

Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (113)

Downloads: (external link)
https://doi.org/10.1111/1911-3846.12144

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:coacre:v:33:y:2016:i:1:p:204-227

Access Statistics for this article

More articles in Contemporary Accounting Research from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().