Know thyself: misperceptions of actual performance undermine achievement motivation, future performance, and subjective well-being.

@article{Kim2010KnowTM,
  title={Know thyself: misperceptions of actual performance undermine achievement motivation, future performance, and subjective well-being.},
  author={Young-Hoon Kim and Chi-yue Chiu and Zhimin Zou},
  journal={Journal of personality and social psychology},
  year={2010},
  volume={99 3},
  pages={
          395-409
        }
}
Contrary to the popular assumption that self-enhancement improves task motivation and future performance, the authors propose that both inflated and deflated self-assessments of performance are linked to an increased likelihood of practicing self-handicapping and having relatively poor performance in future tasks. Consistent with this proposal, we found that irrespective of the level of actual performance, compared with accurate self-assessment, both inflated and deflated self-assessments of… 
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References

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Emotional costs of inaccurate self-assessments: both self-effacement and self-enhancement can lead to dejection.
TLDR
It was found that self-enhancement, like self-effacement, was associated with greater vulnerability to depression and leading low (or high) performers to perceive their performance as high through providing bogus performance feedback produced analogous effects on the magnitude of experienced dejection.
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