Do Strong Boards and Trading in Their Own Firm's Stock Help CEOs Make Better Decisions? Evidence from Corporate Acquisitions by Overconfident CEOs.

@article{Kolasinski2012DoSB,
  title={Do Strong Boards and Trading in Their Own Firm's Stock Help CEOs Make Better Decisions? Evidence from Corporate Acquisitions by Overconfident CEOs.},
  author={A. Kolasinski and X. Li},
  journal={Behavioral & Experimental Finance eJournal},
  year={2012}
}
  • A. Kolasinski, X. Li
  • Published 2012
  • Business
  • Behavioral & Experimental Finance eJournal
  • Little evidence exists on whether boards help managers make better decisions. We provide evidence that strong and independent boards help overconfident CEOs avoid honest mistakes when they seek to acquire other companies. In addition, we find that once-overconfident CEOs make better acquisition decisions after they experience personal stock trading losses, providing evidence that a manager's recent personal experience, and not just educational and early career experience, influences firm… CONTINUE READING
    22 Citations
    Executive Condence and New CEO Selection
    • 1
    • Highly Influenced
    • PDF
    Does CEO Bias Escalate Repurchase Activity?
    • 11
    • PDF
    Restraining Overconfident CEOs through Improved Governance: Evidence from the Sarbanes-Oxley Act
    • 59
    • Highly Influenced
    • PDF
    and Share Repurchases
    • 3
    CEO Overconfidence and Corporate Debt Maturity
    • 72
    • PDF
    Executive overconfidence and securities class actions ∗
    • 16
    • Highly Influenced
    • PDF
    Governance, Board Inattention, and the Appointment of Overconfident CEOs
    • 2

    References

    SHOWING 1-10 OF 70 REFERENCES
    Board Composition and Corrective Action: Evidence from Corporate Responses to Bad Acquisition Bids
    • 78
    Determinants of Board Size and Composition: A Theory of Corporate Boards
    • 1,069
    • PDF
    Higher market valuation of companies with a small board of directors
    • 5,709
    • PDF
    Information Control, Career Concerns and Corporate Governance
    • 181
    • PDF
    Are Busy Boards Effective Monitors?
    • 1,029
    • Highly Influential
    • PDF
    Empire-Building or Bridge-Building? Evidence from New CEOs' Internal Capital Allocation Decisions
    • 128
    • PDF