Do optimistic managers destroy firm value?

Ezzeddine Ben Mohamed, Nassreddine Garoui and Kamel Naoui

Journal of Behavioral and Experimental Finance, 2020, vol. 26, issue C

Abstract: This paper investigates the effect of managerial optimism on firm value. Using Stochastic Frontier Analysis approach, we prove that managerial optimism can largely explain corporate inefficiency among NYSE firms between 1999–2011. We also find evidence that suggests that ownership structure and corporate governance can mitigate the effect of managerial optimism on firm value.

Keywords: Managerial optimism; Firm value; Efficiency; Corporate governance; Ownership structure (search for similar items in EconPapers)
JEL-codes: G32 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:26:y:2020:i:c:s2214635019300760

DOI: 10.1016/j.jbef.2020.100292

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