Numerous studies have shown the prevalence of overconfidence among Chief Financial Officers (CFOs). Surprisingly, real effect CFO is under-researched. Using data from a large sample US-listed firms over period 1993–2019 and adopting an eclectic theoretical approach, we find that overconfident CFOs are more likely to increase stock price crash risk than non-overconfident through risk-taking bad ...

Existing research links CEO personality traits to a number of corporate decisions including overinvestment, external acquisitions, and earnings management. These findings raise the question of whether counterparties distinguish between differences in individual CEO behavior, and how they respond to it. We focus on two key counterparties – auditors and credit rating agencies – and examine whethe...

Existing research links CEO personality traits to a number of corporate decisions including overinvestment, external acquisitions, and earnings management. These findings raise the question of whether counterparties distinguish between differences in individual CEO behavior, and how they respond to it. We focus on two key counterparties – auditors and credit rating agencies – and examine whethe...

s We examine the relation between founding family and corporate investment policy through the incentives of CEO compensation in a structural framework. We focus on two pay sensitivities, delta and vega, which motivate managerial efforts and risk-taking behavior, respectively. We find that vega is lowest and delta is highest in active family firms despite no significant differences in both measu...

This paper aims to explore the effects of Chief Executive Officer (CEO) characteristics on managerial risk-taking behaviour and moderating impact Audit Committee (AC) ownership ethnicity in this relationship. The underlining theory employed study is Upper Echelons Theory (UET). Data were hand-collected from annual reports top 100 Malaysian PLCs over 2015-2020 analysed through multiple regressio...

This study examines key mechanisms through which CEO narcissism influences global performance variance in the context of Asian emerging market multinational enterprises. Building on contextual reinforcement model and cushion hypothesis, we focus role foreign direct investment (FDI) risk-taking business group affiliation (BGA). We test our moderated mediation data from 149 South Korean enterpris...

Humans adapt their risk-taking behavior on the basis of perceptions of safety; this risk-compensation phenomenon is typified by people taking increased risks when using protective equipment. Existing studies have looked at people who know they are using safety equipment and have specifically focused on changes in behaviors for which that equipment might reduce risk. Here, we demonstrated that r...

Adolescence is characterized by an increase in risk-taking and reward-seeking behaviors. In other populations, increased risk taking has been associated with tighter coupling between cortisol production and ventral striatum (VS) activation during reward anticipation; this relation has not yet been examined, however, as a function of adolescent development. This study examined the influence of p...