Are Conservatives Overconfident?∗
نویسندگان
چکیده
Recent studies suggest psychological differences between conservatives and liberals, including that conservatives are more overconfident. We use a behavioral political economy model to show that while this is undoubtedly true for election years in the current era, there is no reason to believe that conservative ideologies are intrinsically linked to overconfidence. Indeed, it appears that in 1980 and before, conservatives and liberals were equally overconfident. JEL Classifications: D03, D72, D83, C83
منابع مشابه
CEO Overconfidence Effects on Mergers and Acquisitions
The purpose of the study is to extend further from the result studying overconfidence effects of CEOs on single deal of Malmendier and Tate (2008)’s article to study overconfidence effects of CEOs on multiple mergers and acquisitions. Based on the psychological and financial theories, the likelihood of overconfident CEOs acquiring a company is the net effect of two manifestations of overconfide...
متن کاملIt Takes Two to Tango: Overpayment and Value Destruction in M&A Deals
This study adds to the literature demonstrating the adverse market reaction to acquisitions by overconfident CEOs (e.g., Malmendier and Tate, 2008). In particular, it explores the parallel role played by overconfident target firm CEOs in explaining the premium paid, and value destruction in such deals, and, most importantly, the “perfect storm” of the interaction between the two overconfident p...
متن کاملManagements' Overconfident Tone and Corporate Policies
This paper introduces a new measure of management overconfidence, overconfident tone, and shows its association with excess investments, larger share repurchases, and higher stock portions in CEO compensations. Overconfident tone is composed of abnormal positivity and abnormal certainty. They are calculated by dividing conference call transcripts into management parts and analyst parts, and sep...
متن کاملOverconfident Trading of Asian Investors
This study investigates whether Asian investors trade overconfidently and what factors affect their overconfident trading based on the theoretical predictions of Gervais and Odean (2001) that market gains make investors trade overconfidently in subsequent periods. We find that Asian investors trade more aggressively subsequent to both domestic and U.S. market gains and their overconfident tradi...
متن کاملAnalyzing the Influence of Overconfident Investors on Financial Markets Through Agent-Based Model
In this research, we employ Agent-Based Modeling to analyze how asset prices are affected by investors’ Behavior. We construct a virtual financial markets that contains several types of investors: fundamentalists and non-fudamentalists. In this analysis, we place focus on the influence of overconfident investors on financial markets. As a result of intensive analysis, we find that overconfident...
متن کامل