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- Publisher Website: 10.1002/smj.2291
- Scopus: eid_2-s2.0-84941178428
- WOS: WOS:000360768300005
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Article: Making the same mistake all over again: CEO overconfidence and corporate resistance to corrective feedback
Title | Making the same mistake all over again: CEO overconfidence and corporate resistance to corrective feedback |
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Authors | |
Keywords | management forecast accuracy corrective feedback CEO overconfidence strategic decision making managerial cognition |
Issue Date | 2015 |
Citation | Strategic Management Journal, 2015, v. 36, n. 10, p. 1513-1535 How to Cite? |
Abstract | © 2014 John Wiley & Sons, Ltd. Firms often make mistakes, from simple manufacturing overruns all the way to catastrophic blunders. However, there is considerable heterogeneity in the nature of corporate responses when faced with evidence that an error has taken place, and, therefore, in the likelihood that such errors will reoccur in the future. In this paper, we explore an important but understudied influence on firms' responses to corrective feedback - a CEO's level of overconfidence. Using multiple distinct measures of overconfidence and the empirical context of voluntary corporate earnings forecasts, we find strong, robust evidence that firms led by overconfident CEOs are less responsive to corrective feedback in improving management forecast accuracy. We further show that this relationship is moderated by prior forecast error valence, time horizon, and managerial discretion. |
Persistent Identifier | http://hdl.handle.net/10722/256734 |
ISSN | 2023 Impact Factor: 6.5 2023 SCImago Journal Rankings: 7.820 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Chen, Guoli | - |
dc.contributor.author | Crossland, Craig | - |
dc.contributor.author | Luo, Shuqing | - |
dc.date.accessioned | 2018-07-24T08:57:45Z | - |
dc.date.available | 2018-07-24T08:57:45Z | - |
dc.date.issued | 2015 | - |
dc.identifier.citation | Strategic Management Journal, 2015, v. 36, n. 10, p. 1513-1535 | - |
dc.identifier.issn | 0143-2095 | - |
dc.identifier.uri | http://hdl.handle.net/10722/256734 | - |
dc.description.abstract | © 2014 John Wiley & Sons, Ltd. Firms often make mistakes, from simple manufacturing overruns all the way to catastrophic blunders. However, there is considerable heterogeneity in the nature of corporate responses when faced with evidence that an error has taken place, and, therefore, in the likelihood that such errors will reoccur in the future. In this paper, we explore an important but understudied influence on firms' responses to corrective feedback - a CEO's level of overconfidence. Using multiple distinct measures of overconfidence and the empirical context of voluntary corporate earnings forecasts, we find strong, robust evidence that firms led by overconfident CEOs are less responsive to corrective feedback in improving management forecast accuracy. We further show that this relationship is moderated by prior forecast error valence, time horizon, and managerial discretion. | - |
dc.language | eng | - |
dc.relation.ispartof | Strategic Management Journal | - |
dc.subject | management forecast accuracy | - |
dc.subject | corrective feedback | - |
dc.subject | CEO overconfidence | - |
dc.subject | strategic decision making | - |
dc.subject | managerial cognition | - |
dc.title | Making the same mistake all over again: CEO overconfidence and corporate resistance to corrective feedback | - |
dc.type | Article | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1002/smj.2291 | - |
dc.identifier.scopus | eid_2-s2.0-84941178428 | - |
dc.identifier.volume | 36 | - |
dc.identifier.issue | 10 | - |
dc.identifier.spage | 1513 | - |
dc.identifier.epage | 1535 | - |
dc.identifier.eissn | 1097-0266 | - |
dc.identifier.isi | WOS:000360768300005 | - |
dc.identifier.issnl | 0143-2095 | - |