Executive Condence and New CEO Selection
@inproceedings{Banerjee2014ExecutiveCA, title={Executive Condence and New CEO Selection}, author={S. Banerjee and L. Dai and M. Humphery-Jenner and V. Nanda}, year={2014} }
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
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