The impact of overconfident customers on supplier firm risks

Yiwei Fang, Iftekhar Hasan, Chih Yung Lin, Jiong Sun*

*此作品的通信作者

研究成果: Article同行評審

4 引文 斯高帕斯(Scopus)

摘要

Research has shown that firms with overconfident chief executive officers (CEOs) tend to overinvest and are exposed to high risks due to unrealistically optimistic estimates of their firms’ future performance. This study finds evidence that overconfident CEOs also affect suppliers’ risk taking. Specifically, serving overconfident customers can lead to high supplier risks, measured by stock volatility, idiosyncratic risk, and market risk. The effects are pronounced when customers aggressively invest in research and development (R&D). Our results are robust after addressing self-selection bias and using different CEO overconfidence measures. We also document some real effects of customer CEO overconfidence on suppliers.

原文English
頁(從 - 到)115-133
頁數19
期刊Journal of Economic Behavior and Organization
197
DOIs
出版狀態Published - 5月 2022

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