Exploring the relationship between managerial overconfidence and investment efficiency in the US hospitality industry

Yasmine Souissi and Anis Jarboui

International Journal of Services, Economics and Management, 2024, vol. 15, issue 5, 455-478

Abstract: This paper aims to investigate the influences of the different levels of managerial overconfidence on the investment efficiency (overinvestment and underinvestment) in the context of the hospitality industry. Employing 598 firm-year observations obtained from annual reports and supplementary databases, we use the generalised method of moments (GMM) regression method to estimate the relationship between managerial overconfidence and investment efficiency. This study demonstrates empirically that an over-invested firm with a CEO that has a low level of managerial overconfidence is not found to effectively improve the firm's investment efficiency by reducing the level of over investment in the US hospitality industry.

Keywords: investment efficiency; under-investment; over-investment and managerial overconfidence; hospitality industry. (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=140937 (text/html)
Access to full text is restricted to subscribers.

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:ids:injsem:v:15:y:2024:i:5:p:455-478

Access Statistics for this article

More articles in International Journal of Services, Economics and Management from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().