Research on the Relationship between Managerial Overconfidence and Corporate R &amp;amp; D Investment in the Context of Financing Constraints

Tong-ying, Liang; Mo, Xiangtian

doi:10.4236/ojbm.2017.51003

Cited by 3 publications

(4 citation statements)

References 14 publications

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“…Moreover, they are more likely to have patents and citations per unit of R&D expenditures. Liang and Mo (2017) expect that overconfident CEOs consider shareholders' interest and are more loyal to the shareholders. In addition, they are more likely to improve firm value through achieving the high returns of investments in R&D, and results were consistent with these expectations.…”

Section: Ceos Overconfidencementioning

confidence: 99%

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Auditor s Perceptions of CEOs Overconfidence in Egypt: A Quasi-Experimental Study

Eissa¹

2020

jafas

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This study aims to explore auditor's perceptions of CEOs overconfidence in Egypt as one of the emerging countries. Design/methodology/approach: A quasi-experimental study is used on a sample comprises of 101 practicing auditors at public accounting firms in Egypt to assess (i) CEO overconfidence in a case scenario, (ii) the quality of earnings that would be provided by this overconfident CEO, and (iii) how overconfident CEO would be considered when they are assessing fraud risk, audit risk, audit effort and audit fees. Findings: The results suggest that not all the auditors in the sample were able to discover the same degree of overconfidence personal traits in a case scenario, and it was done by the sense, and they generally agree that overconfident CEO are more likely to provide lower earnings quality. Accordingly, they raise their assessment for audit fees as a result of an increase in fraud risk, audit risk, and audit effort. Practical implications: This study has significant implications for accounting and auditing professionals, market participants and regulators; where auditors should consider the overconfidence of the CEO during the audit process, market participants should consider managerial overconfidence when they are making investment decisions. Moreover, this study highlights the gap between auditing standards and the professional practice; which requires regulators to consider personal overconfidence traits as an indicator of financial reporting risk. Originality/value: This study helps in filling a gap in the literature; where auditor's perceptions of CEOs overconfidence have not been fully investigated in emerging economies.

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Section: Ceos Overconfidencementioning

confidence: 99%

“…Some studies confirm that overconfident CEOs tend to pursue innovation, they spend more on innovation, and they achieve innovative success more than non-overconfident CEOs (Hirshleifer et al 2012;Liang and Mo 2017).…”

Section: -Introductionmentioning

confidence: 99%

Auditor s Perceptions of CEOs Overconfidence in Egypt: A Quasi-Experimental Study

Eissa¹

2020

jafas

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“…Investments made in R & D are an innovative step either by companies or in a country in producing new products and processes, said the Main Science and Technology Indicators Database. R & D is indispensable for companies to create innovation, so managers need to make strategies to determine whether the company will innovate by expecting high income and high risk (Liang & Mo, 2017). Other research results suggest that investment in research and development have a positive influence on company performance (Li, Huajing;Tang, 2017).…”

Section: B Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Analysis of the Effect of Governance and Research and Development on Probability of Default

Nuraini

Leon

Usman

2020

IJSOC

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Research on the probability of default is always very interesting because it is related to the goals of companies that want to live on, this study aims to examine and analyze which variables are important in this study consisting of the audit committee and managerial ownership who are members of governance, as well as the R & D variables. In influencing the probability of default either directly or indirectly by using the mediating variable Current Ratio estimated results (CRh), to predict the probability of default. This study uses Multiple Discriminant Analysis (MDA) in determining the value of the default probability, while the estimation analysis uses two-stage regression. The regression estimation results conclude that the governance variable on the audit committee has no direct effect on the probability of default, while the CRh mediation becomes significant. The managerial ownership variable which is part of the governance variable has a significant effect both directly and indirectly through CRh mediation, as well as the R&D variable which also has a significant effect on the probability of default either directly or indirectly. This study produces a model in which CRh as a mediator can signal the probability of default on non-financial variables such as governance and R&D. The results of this study contribute to early detection of the probability of default of any non-financial variables that affect both governance and R&D. This model was developed to anticipate the occurrence of bankruptcy by detecting the probability of default by using non-financial variables with CRh as mediation which is supported by model tests with Hosmer-Lemeshow and ROC.

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“…Chen, et al, 2012;Malekvar & Abdoli, 2015;Loy & Hartlieb, 2021) CEO over-confidence (e.g. Kuang, et al, 2015;Liang & Mo, 2016;Abdoli & Gholami, 2016;Hur, et al, 2019;Keke, 2021) ‫لبيب‬ ‫زكي‬ ‫المنعم‬ ‫عبد‬ ‫محمد‬ ‫خالد‬ ‫عمر‬ ‫د.‬ ‫اإلدارة‬ ‫بمجلس‬ ‫البشري‬ ‫الجنس‬ ‫تنوع‬ ‫أثر‬ ‫وفعالية‬ ‫الرقابة‬ ‫نظم‬ 137 ‫ال‬ ‫التحاد‬ ‫والمراجعة‬ ‫المحاسبة‬ ‫مجلة‬ ‫العربية‬ ‫جامعات‬ ‫الثالث‬ ‫العدد‬ 2023 (e.g. Yang, 2015) (e.g.…”

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أثر تنوع الجنس البشري بمجلس الإدارة وفعالية نظم الرقابة الداخلية على ظاهرة تباين سلوك التكلفة وانعكاسها على قيمة المنشأة: دليل تطبيقي

زكي لبيب

2023

مجلة المحاسبة والمراجعه لاتحاد الجامعات العربيه

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Purpose: This study aimed to examine the effect of corporate governance mechanisms on asymmetric cost behavior in the Egyptian context, particularly concerning the gender diversity of the board of directors and the effectiveness of the internal controls. Moreover, this study sought to test the implications of the asymmetric cost behavior, particularly concerning its impact on the value of the firm. Research design:I conducted an empirical study on firms listed in the EGX during the period from (2018)(2019)(2020)(2021)(2022). To measure the asymmetric cost behavior, (Anderson, et al., 2003;Homburg & Nasev, 2008) models were employed, the percentage of femininity representation in the board of directors was employed to measure the gender diversity of the board of directors, a dummy variable was employed to capture the adverse auditor opinion concerning material internal control weaknesses as a proxy for internal controls effectiveness, market-based measure (Tobin q) was employed to measure the value of the firm, in addition, accounting-based measures (ROA-EPS) were employed to measure the value of the firm.Findings: This study documented a positive effect of the gender diversity of the board of directors on asymmetric cost behavior from a behavioral perspective. In addition, there is no evidence of a significant effect of the effectiveness of the internal controls on the asymmetric cost behavior. Finally, empirical results indicated a significant positive impact of the asymmetric cost behavior on the value of the firm measured by market-based measure. The additional analysis documented a significant positive impact of the asymmetric cost behavior on the value of the firm measured by accounting-based measures in the medium/long term.Originality/ value: To the best of my knowledge, this study is the first attempt to examine the effects of gender diversity of the board of directors and internal controls effectiveness on the asymmetric cost behavior in the Egyptian context. Also, To the best of my knowledge, this study is the first attempt to examine the impact of asymmetric cost behavior on the value of the firm as measured by market-based and accounting-based measures in the Egyptian context.

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Research on the Relationship between Managerial Overconfidence and Corporate R & D Investment in the Context of Financing Constraints

Cited by 3 publications

References 14 publications

Auditor s Perceptions of CEOs Overconfidence in Egypt: A Quasi-Experimental Study

Auditor s Perceptions of CEOs Overconfidence in Egypt: A Quasi-Experimental Study

Analysis of the Effect of Governance and Research and Development on Probability of Default

أثر تنوع الجنس البشري بمجلس الإدارة وفعالية نظم الرقابة الداخلية على ظاهرة تباين سلوك التكلفة وانعكاسها على قيمة المنشأة: دليل تطبيقي

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