CEO Overconfidence and Financial Reporting Quality

• Main Authors: Hsiao,Sheng-Rung, 蕭聖融
• Other Authors: Chen,Tsung-Kang
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/x27nwt

碩士 === 輔仁大學 === 金融與國際企業學系金融碩士班 === 106 === This paper explores the effects of CEO overconfidence on financial reporting quality by U.S. stock markets data from 2000 to 2014. The empirical results show that, ceteris paribus, the behavior of low overconfidence managers has significant and positive influences on financial report readability. The behavior of high overconfidence managers has insignificant influences on financial report readability. The reason is that if managers are low-overconfident, they will decrease investment behavior to make financial report more readable. In addition, this study also found that if the risk (scale, number of years of company establishment) of company is high, it will enhance (weaken) the positive influence of low-overconfidence managers on the readability of financial statements.