CEO Overconfidence in Real Estate Markets: A Curse or A Blessing? | Zendy

Helen X. H. Bao | Zendy; Haotong Li | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Open Access

CEO Overconfidence in Real Estate Markets: A Curse or A Blessing?

Author(s) -

Helen X. H. Bao,

Haotong Li

Publication year - 2017

Publication title -

25th annual european real estate society conference

Language(s) - English

Resource type - Conference proceedings

DOI - 10.15396/eres2017_157

Subject(s) - overconfidence effect , curse , real estate , business , corporate social responsibility , investment (military) , blessing , monetary economics , accounting , economics , finance , politics , public relations , social psychology , psychology , political science , archaeology , sociology , anthropology , law , history

This paper studies the influence of CEO overconfidence on firms’ financial performance and corporate social responsibility (CSR) in the US real estate investment trust (REIT) market. CEO overconfidence has been shown to have both negative and positive influences on firms. This paper is the first to combine the two sides in a single framework. We find that firms with overconfident CEOs tend to have better CSR performance. In addition, better CSR performance can increase firms’ financial performance, but this positive relationship is undermined by the existence of overconfident CEOs. Our results not only shed light on the two sides of CEO overconfidence in the real estate sector, but also provide a new prospective for research on the CSR–financial performance relationship.

The content you want is available to Zendy users.

Already have an account? Click here to sign in.

Having issues? You can contact us here

Accelerating Research