An empirical evaluation of the overconfidence hypothesis
studied empirically the hypothesis of overconfidence and ..
Compared with the hubris hypothesis and the neoclassical theory, our model not only reconciles the above two stylized facts, but also allows us to relate stockholder returns to the level of managerial overconfidence and competition.
“An empirical evaluation of the overconfidence ..
With the Introduction as the first section, this paper is further organized into five sections: Section 2 develops the hypotheses; Section 3 describes the sample selection and empirical design; Section 4 shows the empirical results mainly surrounding the association between the percentage of employee stock bonus granted and the board and ownership structure variables; and Section 5 contains sensitive tests to determine the robustness of the results to alternative specifications.