CEO overconfidence and labor investment efficiency

Lai, Shaojie; Li, Xiaorong; Chan, Kam C.

doi:10.1016/j.najef.2020.101319

Cited by 34 publications

(18 citation statements)

References 45 publications

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“…erefore, the third research hypothesis (H 3 ) is supported. e findings are consistent with Gervais et al [47]; Malmendier and Tate [19]; Wang et al [52]; Li et al [53]; He et al [1]; Nguyen et al [49]; and Lai et al [84]. Table 6 also shows that the estimated coefficients of control variables (β 4 � −0.002) and company size (β 6 � 0.077) are significant at 1% level, while the coefficient of ownership concentration (β 10 � −0.016) seems to be significant at the 5% level.…”

Section: Regression Analysis Tablesupporting

confidence: 90%

Evaluation of Managerial Overconfidence, Cash Holding, and Investment Efficiency in Companies

Asadi

Oladia

Aghela

2021

Journal of Mathematics

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Managers’ overconfidence leads to overestimating their ability to manage cash sources. Holding more cash may result in overinvestment in projects and investment inefficiency consequently. The present study aims to investigate the effect of cash holding on investment efficiency with the moderating role of managerial overconfidence in Iranian companies. All listed firms in Tehran Stock Exchange, excluding banks, insurance, pension funds, and financial intermediaries, are included in the research. We have used data from financial statements of 91 companies over the period from 2010 to 2018 and conducted multiple regression models to test the hypotheses based on pooled and panel data set with fixed effects. The results indicate a positive relationship between managerial overconfidence and cash holding. The effect of cash holding on investment efficiency turns out to be significantly negative. Furthermore, managerial overconfidence has a significant moderating effect on the relation of the variables. This study is almost the first one, which has been done in emerging markets, so the study’s findings not only contribute to the existing literature on managerial overconfidence and investment efficiency but also assist policymakers, managers, and investors in making effective decisions.

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Section: Regression Analysis Tablesupporting

confidence: 90%

Evaluation of Managerial Overconfidence, Cash Holding, and Investment Efficiency in Companies

Asadi

Oladia

Aghela

2021

Journal of Mathematics

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“…Firms’ investment in employees’ human capital bears risk (Lai et al., 2020). Compared with physical capital investment, human capital investment is riskier partly due to the unpredictability of returns to investments in employees’ competencies.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

CEO gender and corporate labor cost

Fan

Villatoro

2021

Rev Financ Econ

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We examine the impact of CEO gender on firm‐level average labor cost. In a sample of U.S. public firms with voluntary labor cost disclosure, we find that firms with female CEOs have significantly lower average labor cost than firms with male CEOs. This effect is robust to the use of propensity score matching approach to alleviate the impact of possible selection bias and endogeneity concerns. The results are stronger in a subsample of firms where CEO turnover introduces CEO gender change. We hypothesize that female CEOs may be more risk averse and tend to pursue less risky corporate policies, leading to a lower equilibrium employee wage. Alternatively, female CEOs may offer higher non‐monetary employee benefits in lieu of monetary compensation. Our empirical results do not support the risk aversion hypothesis, whereas we find robust evidence that firms with female CEOs offer higher non‐monetary employee benefits than firms with male CEOs, especially in human capital‐intensive firms.

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“…The fifth cluster reviews sticky cost research in the manufacturing businesses including agile manufacturing, inventory control and management, and lean manufacturing (Azeez et al, 2017;Kroes & Manikas, 2018). Finally, the sixth cluster examines the occurrence of sticky costs due to leadership/manager/CEO characteristics related to optimism and overconfidence Bu et al, 2015;Ciftci & Zoubi, 2019;Hur et al, 2019;Krisnadewi & Soewarno, 2021;Lai et al, 2021;Lopatta et al, 2020;Yang, 2015).…”

Section: Resultsmentioning

confidence: 99%

Research on Cost Stickiness in International Journals: A Bibliometric Study

2021

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Contemporary points of view have posited that cost behavior is asymmetrical and tends to be sticky. The purpose of this study is to determine the development of cost behavior research, especially about cost stickiness, in reputable international journals. There are 142 articles that meet the criteria which have been obtained from the Scopus database. Bibliometric analysis has been performed with the help of the VOSviewer application. The results of the analysis show that research related to cost stickiness has increased in the last decade. The cost stickiness research consists of the following clusters: 1) the health industry; 2) labor costs; 3) social, environmental and sustainability issues; 4) corporate governance; 5) specific problems in manufacturing; and 6) leadership characteristics. The topics of research on cost stickiness that are still being researched are related to the role of the environmental community, business strategy, and the role of managerial leadership. In this analysis, the authors also show that articles that treat cost stickiness as an independent variable are limited. Based on the results of this analysis, we provide suggestions regarding opportunities for research on cost stickiness in the future.

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CEO overconfidence and labor investment efficiency

Cited by 34 publications

References 45 publications

Evaluation of Managerial Overconfidence, Cash Holding, and Investment Efficiency in Companies

Evaluation of Managerial Overconfidence, Cash Holding, and Investment Efficiency in Companies

CEO gender and corporate labor cost

Research on Cost Stickiness in International Journals: A Bibliometric Study

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