Managerial Overconfidence and Firm Value

2021 ◽  
Vol 12 (3) ◽  
pp. 71-85
Author(s):  
Gaoa Yu ◽  
Kil-Seok Han ◽  
Kyoung-Hwa Chung
Keyword(s):  
Firm Value ◽  
Managerial Overconfidence

scholarly journals The relationship between managerial overconfidence with basic metals firms value

2016 ◽  
Vol 4 (2) ◽  
pp. 126
Author(s):  
Mahmoud Lari Dashtbayaz ◽  
Shaban Mohammadi
Keyword(s):  
Significant Relationship ◽  
Firm Value ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Financial Statements ◽  
Multiple Linear Regression Analysis ◽  
Capital Cost ◽  
Systematic Sampling ◽  
Managerial Overconfidence ◽  
The Relationship

The purpose of the present study is to investigate the relationship between Managerial overconfidence and Basic metals firm value of the listed companies on the Tehran Stock Exchange (TSE).The population includes 25 firms selected through systematic sampling. The data is collected from the audited financial statements of the firms provided by TSE’s website from 2010 to 2015. In this study the variables, Overconfidence based on earning per share (OEPS), Overconfidence based on capital cost (OCC) has been used to investigate Managerial overconfidence. The results of multiple linear regression analysis show that there is a significant relationship between Overconfidence based on earning per share (OEPS) and firm value. In addition, there is a significant relationship between Overconfidence based on capital cost (OCC) and firm value. The present research examined the relationship between Managerial overconfidence and Basic metals firm’s value of the Basic metals firms listed in Tehran Stock Exchange. The results of multivariate regression accepted two the hypotheses of the research. There is a significant relationship between Managerial overconfidence and Basic metals firm value.

scholarly journals The Effect of Managerial Overconfidence on Firm Value: Evidence from the Johannesburg Stock Exchange

2021 ◽  
Vol 6 (1) ◽  
pp. 1-14
Keyword(s):  
Decision Making ◽  
Firm Value ◽  
Stock Exchange ◽  
Shareholder Wealth ◽  
Direct Impact ◽  
Johannesburg Stock Exchange ◽  
Negative Effect ◽  
Decision Making Processes ◽  
Managerial Overconfidence ◽  
A Company

Managers of a company are responsible for enhancing shareholder wealth. However, decisions made by managers are not always rational, and such irrational decisions could have a direct impact on the value of a firm, and thus, the wealth of its shareholders. Therefore, the objective of this study is to investigate the effect of managerial overconfidence on the value of firms trading on the Johannesburg Stock Exchange. The results of this study indicate that managerial overconfidence exhibits an insignificant effect on a firm’s leverage and innovation levels. Interestingly, this study reports that managerial overconfidence exhibits a significant negative effect on firm value. This finding implies that investors should avoid investing in firms with overconfident managers because such investments could result in a reduction of their wealth. As such, it is important that regulators and policymakers introduce policies to mitigate overconfident and biased decision-making processes.

scholarly journals Faktor Penentu Firm Value Pada Perusahaan Manufaktur Di Indonesia

2020 ◽  
Vol 2 (1) ◽  
pp. 196
Author(s):  
Vincentius G. Krisnawijaya ◽  
Ignatius Roni Setyawan
Keyword(s):  
Growth Model ◽  
Firm Size ◽  
Firm Value ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
Sales Growth ◽  
Return On Equity ◽  
Index Model ◽  
Managerial Overconfidence ◽  
A Company

Firm value is the most important issue for a company, because all the company’s goals is to determine the firm value. There is always another factors while reaching the goals. Managerial overconfidence, profitability, firm size, and leverage are used in this research that affecting the firm value. The companies from manufacturing sector are the population that are used in this research and registered in Indonesia Stock Exchange (BEI) period 2015-2018 with 252 is the number of the total of observation. The managerial overconfidence will be measured by sales index model and sales growth model. This research found that managerial overconfidence which use measurement of sales index model and profitability that use return on equity have a positive and significant impact on firm value. On the side, firm size and leverage have no significant impact on firm value. Further research is expected to have a detail analysist on the subject and period, along with the other independent variables. Nilai perusahaan merupakan hal yang sangat penting bagi sebuah perusahaan, karena semua tujuan dari adanya perusahaan adalah meningkatkan nilai perusahaan. Untuk mencapai tujuan tentu ada faktor-faktor yang mempengaruhinya. Pada penelitian ini akan meneliti pengaruh managerial overconfidence, profitability, firm size dan leverage sebagai variabel-variabel yang menentukan peningkatan firm value sebuah perusahaan. Populasi yang digunakan dalam penelitian ini adalah perusahaan-perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia (BEI) pada tahun pengamatan 2015-2018 dengan total 252 observasi. Managerial overconfidence akan diuji dengan dua pengukuran, yang pertama adalah sales index model dan yang kedua adalah sales growth model. Penelitian ini menemukan bahwa managerial overconfidence yang menggunakan sales index model dengan profitabilitas menggunakan ROE berpengaruh signifikan dengan firm value. Sementara itu, firm size dan leverage ditemukan memiliki pengaruh tidak signifikan terhadap firm value. Penelitian kedepan diharapkan untuk meneliti lebih seksama terhadap subjek dan periodenya bersamaan dengan variabel independen lainnya.

scholarly journals Would Overconfident CEOs Engage More in Environment, Social, and Governance Investments? With a Focus on Female Representation on Boards

2021 ◽  
Vol 13 (6) ◽  
pp. 3373
Author(s):  
Jaehong Lee ◽  
Eunsoo Kim
Keyword(s):  
Firm Value ◽  
Female Leadership ◽  
Corporate Value ◽  
Female Representation ◽  
Negative Effects ◽  
Upper Echelon ◽  
Board Representation ◽  
Managerial Overconfidence ◽  
The Relationship

This study examines the relationship between CEO overconfidence, environment, social, and governance investments, and firm value. Drawing on insights from upper echelon and agency theory, greater female representation on boards is expected to act as an independent monitoring mechanism to control and reconcile CEO overconfidence which leads to enhancement of corporate value induced by environment, social, and governance investments. Empirical evidence in this study finds that, on average, overconfident managers tend to engage in ESG investments in South Korea. Furthermore, in firms with high environment, social, and governance investments, the negative association between CEO overconfidence and firm value is mitigated, showing that environment, social, and governance investments are effective moderators in controlling and constraining managerial overconfidence. Finally, we find that the joint impact of CEO overconfidence and environment, social, and governance investments on corporate value is distinctive in firms with female board representation. Taken together, we find that negative effects associated with CEO overconfidence can be alleviated by the role of female leadership that links corporate environment, social, and governance investments to firm value.

scholarly journals The effect of managerial overconfidence on firm value: evidence from companies listed in Tehran stock exchange

2016 ◽  
Vol 4 (1) ◽  
pp. 32
Author(s):  
Mahmoud Lari Dashtbayaz ◽  
Shaban Mohammadi
Keyword(s):  
Regression Analysis ◽  
Behavioral Finance ◽  
Firm Value ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Measurement Methods ◽  
Independent Variable ◽  
Managerial Overconfidence

<p>Overconfidence, one of the most modern concepts of behavioral finance, both in financial theory and psychology is important. The effects of overconfidence managers Company's procedures, including accounting policies, hence it is important that overconfidence can be inaccurate and inappropriate policies on investment decisions, finance or accounting result and costs heavy impose on companies. Article overconfidence effect on the value of the company's review. The company's value as a dependent variable using Q-Tobin measured. Overconfidence variable as well as the independent variable with studies based on measurement methods and their impact on the performance of 50 companies listed in Tehran Stock Exchange during 2011 to 2015 using regression analysis do. The results of this study showed that overconfidence on both methods have an impact on firm value.</p>

Pengaruh Kinerja Keuangan Dan Corporate Social Responsibility (CSR) Terhadap Nilai Perusahaan Perbankan Di Bursa Efek Indonesia

2018 ◽  
Vol 26 (1) ◽  
pp. 95-111
Author(s):  
Sulastiningsih Sulastiningsih ◽  
Rizka Imanita Sholihati
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Firm Value ◽  
Research Method ◽  
Quantitative Research ◽  
Annual Report ◽  
Stock Exchange ◽  
Secondary Data ◽  
Corporate Social

This study aims to determine whether the financial performance measured by using CAR, ROA, LDR, BOPO, and CSR can affect the value of banking companies as measured by using PBV. This study uses secondary data taken from the annual report of banking companies during the year 2012-2016 listed on the Indonesia Stock Exchange. The number of samples of this study as many as 25 banking companies with a total of 125 data. This research method is quantitative research. The results of this study indicate the effect of CAR, ROA, LDR, BOPO, and CSR variables on firm value measured by using PBV in a banking company listed on the Indonesia Stock Exchange. Keywords: CAR, ROA, LDR, BOPO, CSR, PBV

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