Executive Condence and New CEO Selection

  title={Executive Condence and New CEO Selection},
  author={S. Banerjee and L. Dai and M. Humphery-Jenner and V. Nanda},
  • S. Banerjee, L. Dai, +1 author V. Nanda
  • Published 2014
  • Business
  • Does a senior-executive’s confidence-level affect the likelihood of being promoted to CEO? Prior literature suggests CEOs tend to be overconfident and that, in certain situations, overconfidence can enhance firm-performance. Using an option-based overconfidence-measure, we show overconfident-senior-executives are more likely to be promoted. Firms that are candidates for a change in strategy (i.e., mature, low-risk firms) tend to appoint overconfidentexecutives and benefit in terms of improved… CONTINUE READING
    1 Citations
    Director Overconfidence
    • 1


    Overconfidence, CEO Selection, and Corporate Governance
    • 535
    CEO Optimism and Forced Turnover
    • 403
    • Highly Influential
    A Rationale for Hiring Irrationally Overconfident Managers
    • 3
    • Highly Influential
    CEO Overconfidence and Dividend Policy
    • 184
    • PDF
    CEO turnover and outside succession A cross-sectional analysis
    • 1,088
    Are Overconfident CEOs Better Innovators
    • 847
    • Highly Influential
    • PDF
    Can Strong Boards and Trading Their Own Firm’s Stock Help CEOs Make Better Decisions? Evidence from Acquisitions by Overconfident CEOs
    • 84
    • Highly Influential