Executive Condence and New CEO Selection

@inproceedings{Banerjee2014ExecutiveCA,
  title={Executive Condence and New CEO Selection},
  author={Suman Banerjee and Lili Dai and Mark L. Humphery-Jenner and Vikram 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… Expand
Director Overconfidence
We examine overconfident CEO directors and find they attend more board meetings, are more likely to serve on the nominating or the compensation committee, have more independent directorships, andExpand

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