Overconfidence and Early‐Life Experiences: The Effect of Managerial Traits on Corporate Financial Policies

Malmendier, Ulrike; Tate, Geoffrey; Yan, Jonathan

doi:10.1111/j.1540-6261.2011.01685.x

Cited by 1,367 publications

(902 citation statements)

References 70 publications

(88 reference statements)

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“…Furthermore, we contribute to the general literature on managerial traits (Bertrand & Schoar, 2003;Graham et al, 2013;Malmendier & Tate, 2005, 2008Malmendier et al, 2011), particularly the impact of gender on firm outcomes (Adams & Ferreira, 2009) in a business that has about onethird female CEOs.…”

Section: Resultsmentioning

confidence: 99%

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Female Leaders and Financial Inclusion. Evidence from Microfinance Institutions

2016

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This research advances the hypothesis that female leaders -chief executive officers (CEOs), chairs, and directors -of a microfinance institution (MFI) give more priority to the poorest families in loan provision than male leaders do. We differentiate between a depth and a width dimension of financial inclusion. The data set is a unique global panel of MFIs collected from MFI raters' reports. Our sample is also unique in the sense that about one-third of all MFIs have a female CEO. The problem of endogeneity for the female leader is resolved by running Heckman's two-step endogenous dummy variable estimation with an instrument for the female leader. We find evidence of greater depth financial inclusion (smaller average loans, more gender bias) with a female leader but not for width financial inclusion (credit client growth). Female leaders exhibit greater altruism and greater competition avoidance but not greater risk aversion than male peers. ABSTRACTThis research advances the hypothesis that female leaders -chief executive officers (CEOs), chairs, and directors -of a microfinance institution (MFI) give more priority to the poorest families in loan provision than male leaders do. We differentiate between a depth and a width dimension of financial inclusion. The data set is a unique global panel of MFIs collected from MFI raters' reports. Our sample is also unique in the sense that about one-third of all MFIs have a female CEO. The problem of endogeneity for the female leader is resolved by running Heckman's two-step endogenous dummy variable estimation with an instrument for the female leader. We find evidence of greater depth financial inclusion (smaller average loans, more gender bias) with a female leader but not for width financial inclusion (credit client growth). Female leaders exhibit greater altruism and greater competition avoidance but not greater risk aversion than male peers. JEL codes: G34; M12; M14

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Section: Resultsmentioning

confidence: 99%

“…The way we handle the endogeneity problem contributes to the literature on managerial traits (Bertrand & Schoar 2003;Graham, Harvey, & Puri 2013;Malmendier & Tate 2005, 2008Malmendier, Tate, & Yan 2011). A general result here is that gender or other personality characteristics (e.g.…”

Section: Introductionmentioning

confidence: 96%

Female Leaders and Financial Inclusion. Evidence from Microfinance Institutions

2016

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“…Por meio de teorias comportamentais, diversos autores vêm demonstrando que é possível explicar a influência de possíveis vieses no comportamento dos tomadores de decisão, levando-os a optarem por alternativas menos pautadas em aspectos racionais interferindo, desta forma, na estruturação do capital das empresas (Thaler, 1999;Barber & Odean, 2011;Malmendier, Tate & Yan, 2011;Andriosopoulos et al, 2013).…”

Section: Perspectivas Teóricas Sobre Estrutura Do Capitalunclassified

“…Em função da relevância da influência dos aspectos comportamentais nas decisões dos gestores, diversos pesquisadores vêm estudando esta relação (Malmendier & Tate, 2005;Hackbarth, 2008;Barros & Silveira, 2009;Barber & Odean, 2011;Cronqvist et al, 2011;Malmendier et al, 2011;Graham et al 2013;Andriosopoulos et al, 2013).…”

Section: Excesso De Confiança E Otimismounclassified

Influência do Excesso de Confiança e Otimismo no Endividamento de Organizações Cinquentenárias e não Cinquentenárias Brasileiras

Silva

Mondini

Silva

et al. 2017

RECFin

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RESUMOObjetivo: O objetivo do estudo é de analisar a influência do excesso de confiança e otimismo dos gestores no endividamento de empresas cinquentenárias e não cinquentenárias brasileiras. Fundamento: A proposta da teoria comportamental é explicar a existência de possíveis vieses no comportamento dos agentes que podem levá-los a conduzir a empresa a novos caminhos, tradicionalmente, a teoria financeira se pauta em modelos voltados para a racionalidade dos gestores. A teoria comportamental se propõe a explicar a possibilidade dos vieses comportamentais dos gestores, levarem-nos a tomar decisões menos pautadas em aspectos racionais, interferindo, desta forma, na estruturação do capital das empresas Método: Desta forma, adotou-se uma pesquisa descritiva, com análise documental de dados provenientes da base Thomson®, com uma abordagem quantitativa e os dados foram processados por

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“…Corporate risk taking has previously been examined in terms of performance feedback [2], slack [3,4], top management incentive systems [5][6][7][8], and environmental factors [9]. More recently, scholars begin to shift their attention to the effect of the innate attributes of managers on their risk-taking incentives, such as sensation seeking, overconfidence, education, military background, depression-era life experiences, religious belief, and political affiliations [10][11][12][13][14][15]. In this paper, we classify the CEO characteristics into two basic aspects: the physical and the psychological.…”

Section: Introductionmentioning

confidence: 99%

Management Characteristics and Corporate Risk-taking: An Overall Review

Su¹,

Li²,

Wang³

2017

dteees

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Abstract. We review the literature on the relationships between management characteristics and corporate risk-taking over the period 1985~2015 and find that the two types of management characteristics: the physical characteristics and the psychological ones lead to different risk-taking behavior and firm outcomes. Generally, the physical traits have impact on taking risk by psychological bias and the psychological traits affect risk-taking behavior directly. We also find that the researchers always use the traits of CEO or top management as the proxies to explain management behaviors.

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Overconfidence and Early‐Life Experiences: The Effect of Managerial Traits on Corporate Financial Policies

Cited by 1,367 publications

References 70 publications

Female Leaders and Financial Inclusion. Evidence from Microfinance Institutions

Female Leaders and Financial Inclusion. Evidence from Microfinance Institutions

Influência do Excesso de Confiança e Otimismo no Endividamento de Organizações Cinquentenárias e não Cinquentenárias Brasileiras

Management Characteristics and Corporate Risk-taking: An Overall Review

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