 Self attribution bias of the CEO: Evidence from CEO interviews on CNBCKim, Y. Han (Andy) Journal of Banking & Finance, 2013, vol. 37, issue 7, 2472-2489 Abstract: Self attribution bias (SAB, hereafter) is a mechanism that engenders overconfidence by attributing good performance to one’s ability and bad performance to bad luck or the environment (Gervais and Odean, 2001). Using the transcripts of CEO interviews on CNBC, we measure the SAB of the CEO. Consistent with the prediction by Gervais et al. (2011) and Goel and Thakor (2008), we find concave non-linear relation between SAB and the market response to acquisition announcements. We also find that the CEOs with SAB are more likely to be fired and more sensitively to performance, especially under stronger governance regime of Sarbanes Oxley Act (SOX). Our results are robust after controlling for the selection bias to be in the CNBC interview. We consider and rule out alternative explanations, such as journalists’ impact on governance and CEO’s narcissism. Keywords: Self-serving attribution bias; Overconfidence; CEO turnover; Investment cash flow sensitivity; CNBC; Media; Corporate governance (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:37:y:2013:i:7:p:2472-2489 DOI: 10.1016/j.jbankfin.2013.02.008 Access Statistics for this article Journal of Banking & Finance is currently edited by Ike Mathur More articles in Journal of Banking & Finance from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.