The role of media coverage on influencing CEO overconfidence: A study of the existence and causality of this relationship
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2021-08-20
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en
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This paper examined whether media coverage had a tangible influence on CEO overconfidence.
To this purpose, I computed CEO overconfidence based on the stocks owned by CEOs and observed
the effects of several variables meant to capture media coverage which was hand-collected. I then
generated multiple logistic regressions with clustered standard errors and random effects. The results
were inconclusive due to the lack of significance of several variables and an inexplicably
counterintuitive result for a specific measure of press coverage (Press). Nevertheless, some
variables were significant and supported a potential relationship between media coverage and CEO
overconfidence. This thesis encourages further research in order to concretely determine the nature
of their relationship. I also offer an explanation for the lack of significance and decisiveness of the
results. In addition, this study proposes a procedure to observe the potential reverse causality of the
relationship, illustrated by anecdotal evidence.
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Faculteit der Managementwetenschappen