Behavioral CEOs: The Role of Managerial Overconfidence

This is the authors' abstract. We don't add key points for this paper.

In this paper, we provide a theoretical and empirical framework that allows us to synthesize and assess the burgeoning literature on CEO overconfidence. We also provide novel empirical evidence that overconfidence matters for corporate investment decisions in a framework that explicitly addresses the endogeneity of firms' financing constraints.